By: Andrew Date
What is the most important factor, when buying property? Back
We love when our clients appreciate our advice and insight into the real estate industry. Together with our knowledge of current market conditions, our network of selling agents and our understanding of what to look for when purchasing and investing in property.
In my opinion, your first purchase is the hardest. If you make a wrong decision the first time you buy a property, then the chance of you ever having a successful property portfolio is dramatically reduced.
This belief stems from the difference in capital growth that a property located in a premium location, with good solid bones, can achieve. Opposed to a property purchased in an area that is less desirable, in a position that may not see any capital growth.
Almost all property investors use the equity that their first property provides. If you decided on a DIY purchase, and the decision wasn’t based on historical facts and research, then you may be in for a very long waiting game to see enough capital growth to achieve ever buying an investment property.
Contrary to what some people believe, there are good and bad properties.
When we locate, evaluate and negotiate on behalf of our clients, we are extremely picky. The facts are, a lot of properties that are listed online for sale; we don’t inspect. The reason being is the location doesn’t represent a good long term investment.
The location is unequivocally the most important part of a property purchase.
Almost everything else you can change. You can improve the property over time, renovate the kitchen or bathroom, build an outdoor alfresco area, or even extend the property for a growing family. All of the above will add value to your property.
It’s easy to select the wrong location because your friends and family already live in the same suburb. You might decide that you want to live in a brand new house. So you go ahead and build your dream home, and in doing so, you sacrifice the location for the shiny new house.
Currently, the Melbourne average median price is $742,000.
Seaford is a favourite suburb of ours, for investors and first home buyers, because you can still buy in the premium locations of the suburb for under the $650,000. If your desire a renovated property in an A grade position in this suburb, then you will have to pay above theMelbourne median price tag of $742,000.
Here we share two recent examples in Seaford, that achieved well above $800,000
The infrastructure in the area has improved. With two train stations servicing the suburb. You can drive to the Melbourne CBD in under 45 minutes and access the Mornington Peninsula, by driving down Nepean Highway or Peninsula Link. Offering beautiful white sandy beaches and the gentrifying cafe culture is adding a real vibe to this bayside suburb.
We helped a client purchase OFF MARKET in Seaford before the property was advertised on realestate.com.au for $581,500 (April)
This property sold last weekend in the same street for $679,000.
Updated with an outdoor alfresco area. A smaller floorplan than 21 Hayman Avenue.
We have recently helped clients with their property decisions in Altona, Burwood and Mount Eliza. We are excited to be helping our clients over the next couple of months in Caulfield, Kew, South Melbourne and Frankston South.