Have you ever wanted to know what property an investor should buy? It’s a question we get asked ALL the time and for a very good reason…. pick the wrong property and you’re in trouble!

So today’s central theme is all about Asset Selection! i.e. What type of property should an investor buy? What indicators can we measure to prove it’s a good one? How can you increase your capital growth?

You’ll get the answers to TEN quality (and recent) questions from our listeners… and we’re not holding back with our responses! (to the point where we actually had to tell ourselves to hurry up so we could get through all ten for you..!!)

This episode is a must-listen for anyone even remotely interested in property investing, folks! So plug in your head phones now! You can check out all the questions we answer below. And remember to write in here if you have a question for us, or follow us on Facebook so you don’t miss out on impromptu shoutouts like the one that inspired this episode!

Finally – Asset Selection is one of our Four Pillars of Mastery for a reason, folks! So please choose wisely when it comes to your investment property! Tune in now and get the practical tips to find an investment grade property… 🙏

 

Free Stuff

Questions

Sambooks
Long time listener, first time engager! We have been epically saving for our first home, which we would like to have the option to make an investment property when we grow out of it. Only catch is we currently live and rent in the Whitsundays, which is struggling significantly due to lowered tourism rates from COVID. Having listened to the podcast for over 2 years, I understand the risks of purchased property in a location with a poorly diversified economy. Understanding that you are unable to provide personal financial advice; is there anything else we can do to mitigate the risk as we love the area (& both have stable employment) and can see the potential of some of the lower range properties coming into the market.

Matt
I often see properties bought by Empower Wealth with the historical capital growth rate on Facebook, Instagram etc. Is this a factor to consider when deciding whether a property will perform over the long term (20+ years)? Thanks in advance.

Todd
Q: Borderless Investing / Buyers Agents. My partner and I are looking at buying our next property interstate to 1) diversify our portfolio and 2) reduce land tax liability. Are there Buyers Agents which cover Australia wide who can give an objective view of which interstate market to buy in? Or do we need to reach out and find a local buyers agent in each state? 

Dan
Obviously depending on your own horse and what course you want to ride, but typically speaking… Is it worth having 2 smaller to mid-range properties delivering high yield ($300-350k with 6% yield) or worth chasing a high growth high level home ($600-700k with 3% yield)? Or even if the yield and growth stories were aligned, is two at half the pa income better than one at full pa income? Lower or higher risk?

(Psst… Bryce and Ben here. If you’re interested in learning more about this subject beyond our answer, check out this free case study on growth versus yield 😉)

Kieren
Tossing up between moving into one of my rental properties as I have been renting the last twelve months after selling my last home (dollar saved is better than a dollar earned at the minute). Do you think this is a good strategy to ride out this COVID storm rather than buy right now? I want our next property to be the big rock in the jar. I also want to buy acreage, what are your thoughts on Samford Valley in Brisbane for long term growth?

Jack
Getting the location right can be narrowed right down to the street but as an investor holding long term and not actually wanting to sell, is it better to try get a house on that busy street in an A-grade suburb at a discount so when getting valuations and comparable sales in the future it will work in your favour?

Matt
Thoughts on buying defence housing Australia projects? I wouldn’t buy new as I understand you’re buying the developer’s margins but would you buy as the second or third owner once the market has caught up? Are there any downsides to permanent long term leases? I believe you’re locked in with their real estate agent that’s a much higher management fee (around 16%) but they cover any minor repairs and at the end of the defence lease they refresh the house up to ‘new’ standards i.e. new carpet, fresh paint etc.

Damien
Could Bryce and Ben talk about active investing: fixer uppers, buying to subdivide and build units, and buying 2 bed 1 bath period/character homes to turn into 4 bed 2 bath homes?

Jarryd
I bought ‘house & land’ 3 years ago before I was educated. What can I do now to ensure growth?

Matt
Is putting a granny flat out the back a good idea when retiring out the debt? Pros and cons?