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Check the demographics of the location

It is vital that you find out the prevailing demographics of the location where you are looking at buying.

Is it popular with families or students? Is it a culturally diverse area? Does it already have a high proportion of renters? Is there a high incidence of crime in the area? Are there plans to develop the infrastructure of the location?

All of these can impact on finding tenants for the property, securing a good rental return and further down the track, being rewarded with a decent capital gain when you sell.

Much of this information can be tracked down for free using the ABS census data. Ray White chairman Brian White advises that you consider whether a prospective property would appeal to an owner-occupier or more likely appeal to another investor.

Answering this question will depend on its location, neighbouring properties, type of building and its current occupants.

“If you can imagine it being an owner-occupier, it is likely to offer a significantly better capital growth return. Upward drive in residential values isalways led by owner-occupiers,” says White.


This article is from Property Observer's free ebook Top 10 Property Investment Tips

 

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