We are living through a period of uncertainty and trying to select which property investment is best can be a very dangerous game!
When I talk about this graph it’s all about the one percenters. On one axis is an investment of a property for say $500,000, on the other axis , the annual percentage capital growth over 20 years.
You can see in the illustration the difference between selecting a growth asset that performs at 5% compound per annum , compared to that of 9%. compound per annum is significant. The difference is just under $1.5m just in selection of the right property over the 20 year time horizon.
There are many attributes that can cause performance to go astray including density, floor plan, orientation, position within a block, condition, size , location within a suburb, street or building.
I have a checklist of 50 attributes that I tick before submitting an investment property to a client.
If it does not tick all of the boxes , it is not going to perform and I simply will not recommend to my client to buy.
Property is a long term investment but if it has not shown capital growth in the past , its not going to suddenly start to perform because you bought it.
Only the top 3% of all property will show the capital growth profile that I am searching for. If it falls outside of this box, then I simply pass.
If you would like any advice on how to select and buy property using my unique fundamentals please contact me.
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