The questions buyers bring to every property they inspect are \u201cwill it be a good investment?\u201d and \u201cwill I get reasonable capital appreciation when I sell?\u201d<\/p>\n
Bellarine Property managing director Christian Bartley said that uppermost in people\u2019s minds is finding a home that suits their needs, but the underlying rationale is nearly always investment potential.<\/p>\n
\u201cAnd why not? With inflation eating away at salaries and savings, housing is one of the few commodities that, wisely chosen can keep the consumer ahead. The crucial phrase is of course, \u2018wisely selected\u2019.\u201d<\/p>\n
Mr Bartley said in terms of capital growth the best case scenario is not always the best place scenario.<\/p>\n
\u201cAttributes related to the land (proximity to desirable amenities, size, use, aesthetics, absence of negatively impacting neighbours and just plain old area appeal) carry more weight in determining the value of most properties than the actual building on the land. For example, an upmarket home on a negatively impacted block may have less value than a small home in a sought-after area.\u201d<\/p>\n
He said that buyers could make an informed decision once they had researched the selling prices of a big enough sample of properties.<\/p>\n
\u201cGet to know the pattern of sales activity for the area in which you are shopping.<\/p>\n
\u201cPlay it safe by not buying too far above the median price for the area. This is where the highest demand and turnover will be.<\/p>\n
\u201cMany people are tempted by the apparent cost saving of being able to build a big home if they buy a cheap block of land or by the fact that it appears cheaper to add on to their current home than move to another one.<\/p>\n
\u201cBut in the long run they are more likely to afford the bigger home by buying location and letting a combination of increasing values and equity finance them into a bigger home over time.\u201d<\/p>\n
According to Mr Bartley, there are exceptions to the rule and many people opt for immediate lifestyle choices rather than sure capital gain.<\/p>\n
\u201cIt is a real estate clich\u00e9 that the best purchase in investment terms is actually the worst house in the street or area.<\/p>\n
\u201cSuch homes can usually be improved without over-capitalising \u2013 provided you know what prices are being achieved for similar properties and don\u2019t exceed that limit for renovations or extensions.\u201d<\/p>\n
For more information, phone Christian Bartley on 0410 695 325, email christian@bellarineproperty. com.au or visit bellarineproperty.com.au<\/p>\n","protected":false},"excerpt":{"rendered":"
The questions buyers bring to every property they inspect are \u201cwill it be a good investment?\u201d and \u201cwill I get reasonable capital appreciation when I sell?\u201d Bellarine Property managing director Christian Bartley said that uppermost in people\u2019s minds is finding a home that suits their needs, but the underlying rationale is nearly always investment potential. […]<\/p>\n