How to assess the value of a investment property

Rental return – how much rent can you reasonably expect to obtain? Are you able to cover the difference between th rent and your mortgage and expenses? Is it enough for your investment strategy?
 
Potential capital growth – what is the expected increase in value of the house? Will this property enjoy high demand in the future? Please note that past high increases are no guarantee of continued high growth.

Overall return – things to think about 

a) Rental Return vs Capital Gains. In general, properties that attract a higher rental return usually have lower capital growth. With marginal tax rates falling, it's probably wise to have a combination of good return and capital growth.
 
b) Interest rates can also impact the return significantly especially where extreme fluctuations occur - always allow a buffer for interest rate increases, or fix the rate to be ensured of some certainty.
 
c) Always keep the long term view in mind – property investment incurs many costs to buy and sell and as such, impacts overall profit especially in the short term.

 

There is a way to help assess the value of a potential property that fits with your investment strategy.

The My Research facility available through the Real Estate Investar online portal.

In a nutshell, the My Research tool can help real estate investors to search for the perfect property to add to their portfolio, thanks to the online property information statistics it can provide -- at your fingertips.

Many real estate investors are used to paying $50-$90 per individual property report -- if you need to research information on a handful of properties each week, this can more than blow the budget.

Real Estate Investar also offers a My Valuation sign up, which offers real estate investors access to an unlimited range of online valuation reports and tools, along with My Research tools for a monthly fee.

A My Research and My Valuation subscription will provide real estate investors with access to:

  • Price finder valuation software and tools
  • Map-based property database and sales history searches
  • Quick property database search

These tools offer investors timely information for usage to research and find residential, commercial and industrial property investment opportunities.

My Research and My Valuation were designed with the professional and serious real estate investor in mind, who is looking to get their hands on extensive research, information, reports and statistics to assist them with honing their real estate investment goals and strategies, and planning their next investment move.

 

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