There are 7 golden rules (infographic below) for finding your ideal property which we are going to cover in the next part of the course. The first, and most obvious, however, is making sure you choose the right location to invest in.
While many new investors tend to choose an area because they live near to it or have heard good things, this is seldom the best approach.
It’s much better to leave your prejudices, biases and even preferences at the door and work on understanding the bigger picture.
So, when you are looking at a particular location you need to be considering things like demographics, homeownership density versus social housing and tenant demand.
Because if you don’t consider these factors you may find that you can’t don’t achieve the yields you want, long-term and you might be missing out on an opportunity for capital growth. Worse still, you might not be able to rent the property out at all!
We will be revisiting how to research locations later on in the course, where we will go into detail on what you should be looking out for.
For now, however, it is enough to know that choosing the right location is going to be a fundamental factor in your success.