How to find the right property?

I had this conversation with a new client recently and thought it was worth sharing.

"How to find the right property" I think it is great you have taken a property coach / professional to help you find the right property. I will add below what I have learned to be important criteria when it comes to getting the right advice and the right property. Keep these in mind, use what is applicable and disregard what doesn't apply.

For an owner occupied property:

• Buying an owner occupied property is an emotional decision, you want to love it (or at least like it a lot)
• Make sure it is in a location that is convenient (in relation to work or transport or family or social life)
• Make sure it is well within budget. I am passionate about making sure you do not overstretch yourself. No fun having a wonderful place to call home only to stress about paying for it.
• Make sure there are no unexpected problems or costs. Get a building and pest report and if there is strata fees, check what the strata fees are and if there are any special levies coming up. Is there money in the sinking fund?

For an investment property:

• Buying an investment property is a financial decision, you are buying to make a capital gain (over time) or have a strong rent return. Or both
• The fundamentals need to stack up. Here are drivers for property growth. You won't get them all per say but make sure you get several:
• You want population growth
• You want growth in employment opportunities and business
• You want to see government committed funds (not planned, committed) towards infrastructure (roads and rail), schools and hospitals
• You want industry investing in the area like new shopping centres, cafe's, etc
• You want popular schools nearby
• Make sure it is in a location that is convenient for tenants (Close to large employment centres or transport or schools or lifestyle)
• Check what demographic you are aiming for and that the demographic is right for the area (they are growing as a percentage of the population, they have the money to pay for your property). Or in reverse, make sure you pick a style of property that appeals to the predominant demographic.
• Make sure the property is well within budget. For investment as well I believe it is important you do not overstretch yourself. It will keep you "stuck" on your first investment.
• Make sure there are no unexpected problems or costs. Get a building and pest report and if there are strata fees, check what the strata fees are and if there are any special levies coming up. Is there money in the sinking fund?
• Make sure the property is a good price for the area and the demographic
• Make sure the builder is a quality, well established builder and that the quality of finishes is good (things like high ceilings, energy efficiency, stone / waterfall bench tops, stainless steel appliances, open plan living, lots of natural light, pleasant communal feeling to the area, etc.) Just ask yourself, how would a tenant feel living here?
• Keep in mind it is land that goes up in value over time. The bricks and mortar are considered of no value in 40 years time. So more land (as long as it is in the right location) means growth.