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Tips - buying an investment property


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									                   Tips - buying an investment property

Investing in property Egypt is one of the best ways to shore up your financial future, but your choice
of property will have a huge bearing on your capital gains and rental returns, so it’s important to
choose wisely.

Here are my first few pieces of advice:

       Drive-by investing. I strongly advocate buying investment properties you can drive past. It
        makes the vetting process easier if you know a suburb well.
       Mix facts with feeling. Buying for investment should be a less emotional decision than
        buying to live in but you should still let your intuition to guide you – if it feels good, you’re
        probably on the right track.
       Discount personal preferences. Love living on acreage? Most Australians prefer proximity
        to the beach and CBD. Love a secluded location? Most of us prefer the convenience of a bus
        at the door and a short walk to the shops.

Demand is the crucial overriding factor influencing the capital growth and rental returns of your
investment property. Location is a key element in driving demand, so buy a property that will appeal
to the bulk of the population, which means the following:

       Walking distance to cafes. Cafes are now Australians’ No 1 choice for social gatherings as
        our coffee culture continues to grow.
       Walking distance to shops. Not necessarily supermarkets, but corner shops enabling
        residents to buy the necessities close to home.
       Walking distance to transport. Ensure the commute to work, whether in the CBD or
        regional commercial hubs, is as easy as possible.

Consider these three factors non-negotiable in your search for an investment property Egypt.

Depending on your budget, if you can also afford to buy in a location with the following secondary
elements then you can substantially maximize your long-term returns:

       Walking distance to the beach. Australians have on ongoing love affair with the ocean and
        most people consider the coastal lifestyle to be the ultimate.
       Within 15km of your capital city. The bulk of employment is in our CBDs but regional
        centres like North Ryde and Parramatta in Sydney are also becoming more important.
       Established suburbs. In my experience, established suburbs with their own unique character
        grow faster than new suburbs, many of which have a cookie-cutter feel to their architecture
        and lack uniqueness to their social atmospheres

Identify some specific suburbs work out which parts are the most desirable and ‘in demand’. Rely on
the advice of agents, shop owners and anyone you know living there. A few key considerations are:
       Buy the better side. One side of a suburb is often considered better than the other despite
        being equally close to cafes, shops and transport.
       Avoid main roads. They are usually noisy and achieve lesser capital gains.
       Get the aspect right. A north or north-east orientation for the main living areas and gardens
        is best.
       Nice surroundings. Buy in streets with well-maintained neighboring properties and avoid
        buying houses in streets full of apartments.

The final factor is property Egypt type. The short answer is: buy a house if you can but don’t consider
apartments the poorer choice. While houses have historically achieved better capital gains, the gap is
closing - and there is greater rental demand for apartments.

       Buy the best house you can. Avoid properties requiring a lot of work. If you need to spend
        more than five per cent of the purchase price to make it rentable, look elsewhere.
       Buy the best apartment you can. Avoid over-supplied areas, apartments with company title
        or high strata levies and buildings with less than 70 per cent owner-occupation.

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