We are constantly researching the property market to find property hotspots where investors can pick up cashflow positive investment property. We have access to hundreds of fully approved investment properties around Australia that have been ‘cherry-picked’ for our investors. We follow industry leading property selection criteria that takes into account metrics such as population, local employment, vacancy rates, future development and demographics. Our property selection process is so stringent that nine out of ten properties we research are rejected.
Why Buy Brand New?
Brand new property gives you the peace of mind of knowing everything is covered by warranty. There is little or no maintenance required, eliminating unwanted issues and unhappy tenants. A brand new property is appealing to tenants because everything is new and in good working order. Happy tenants are crucial to your investment strategy, as they are more likely to renew their lease and will pay a higher rent to live in a nicer home. Recent changes to investment properties mean that depreciation for plant & equipment (i.e., fixtures, fittings, appliances) can only be claimed on brand new items. This can be the difference of claiming thousands in tax deductions each year.
Property Selection Criteria
- Proximity to employment and good schools — people generally like to live close to where they work or in good school zones.
- Access to good local shopping, education, health and leisure facilities which make an area desirable to live in.
- Key infrastructure projects being undertaken or planned in an area i.e. new hospitals, schools or industries being built.
- Access to transport and improved transport corridors, which allows access better access to employment zones and local amenities.
- Minimum population surrounding the property, providing a re-sale market in the event of selling the property, as well as tenant demand.
- No single industry towns such as mining or defence — if the sole industry leaves the town then rental demand drops and property values decline, as does the re-sale market.
- Ratio of rental vs owner occupied — if there are too many rental properties in an area then investors are competing with other landlords for the same pool of tenants. This often means lowering rents or providing other tenant incentives to secure tenants. It can also affect re-sale values.
- Potential oversupply in a market — our research takes into account the existing and future supply of property in an area. Oversupply can dilute the pool of tenants (i.e. they have too many choices of properties), lead to extended vacancies and result in reduced rents & property values.