Selecting The Right Investment Property | Part 2
Now I am not expecting this initial phase of the Grind to take a few minutes. It can take days or even weeks to find 100 good properties worth your further attention.
If you can’t find one hundred properties in a given area, look further a field. Other parts of the country may offer opportunities you can’t find locally. There may be more attractive properties within your reach, take advantage of it. That’s what the net is for.
Now that you have your 100 properties to choose from, you can go to step two of the Grind and rate and rank each of the Top 100 Properties using your checklist.
A top ten or so properties will float to the surface from your top 100 property investment list, and at this point you are already ahead of 95% every other property investors in the market.
This is the result of your hard work and leads us to the interesting part of the Grind.
With your ten investment property shortlist in hand you can now decide what want to pay for each should you eventually own it.
Now forget the asking price here. The asking price on any property is only a number cooked up between the Real Estate Agent and the vendor/owner.
There is always a built in fall back price on what they will really accept when it comes to the crunch. Always.
Now get on the phone and find out which properties are still on the market. One or two of the properties you have selected may have already sold, though do not despair. The other properties that remain, are the absolute cream of what properties are available.
Make an offer on each of these properties according to your research and knowledge of the local market, an offer that you think is a good price.
Remember, now you have become an expert in property market in this area, and you will know exactly what your property is worth to you, and what you want to pay for it.
Make the offers. Out of the ten or so vendors, six or seven will say “what a ridiculous offer”. That’s OK. That’s their prerogative. A few of the people on your list though will get back to you and say “Lets talk”.
The end result of all this being you will get one of these three properties (or all of them if you are so blessed) at a very, very fair price.
An investment property that meets your selection criteria perfectly and in an area you know will always have strong rental demand
Average investors, who choose not to do any real investment property homework, take a great risk.
You often hear about them, you know the ones. “Property Investment Doesn’t Work. My rental property is costing me a fortune. I got ripped off and can’t get a tenant.”. The list goes on. It does not have to be this way.
Finding the right investment property without doing your homework is possible. Then again, so is stubbing your toe on a good sized Gold Nugget, or winning this weeks Lotto.
I just would not count on either of these as my main investment strategy.
Many Australians do.
Cheers
Jamie Wadley – HunterWide Home Loans
