The Blog

Have you ever wondered if the “perfect” Investment Property exists?
The simple answer to this is no it doesn’t.

There are only Investment Properties, not perfect investment properties.

We’ve heard all of the reasons not to buy a certain property over the years;

• It’s $10,000 overpriced
• The block isn’t a rectangle
• The bedrooms are too small
• The house is too small
• The land is too small
• It doesn’t face the right direction

On and on it goes… but tell me this, has the house next door to you doubled in value in the last 10 years?

Has the house on the next block or the next suburb to you doubled in value in the last 10 years? I’m sure it has. Has a rental property near yours not been occupied for long periods of time?

If there is one, it would be a rare case as most houses are rented out.

I lived in Croydon Park for a few years and there was this old property there, tiny old house, looked like it should have been demolished, it came up for rent and sure enough after about a month, it was rented out. I didn’t think that they would get a tenant.

The fact is that all property goes up in value and all properties rent out.
In 1996 there was a guy who came to a seminar and said he hadn’t bought an investment property as yet as everyone he looked at was $10,000 overpriced. In 2006 the same person was at a seminar and in catching up with him he told us that he still hadn’t bought a property for every property he had looked at was overpriced. That guy has lost a lot of money. Did he think that by paying $10,000 “too much” at that time that he would not make double that amount in 10 years? Crazy! All properties go up in value.

My mother lives in a country town that doesn’t really have a lot going for it, in an area of that town which is considered lower class and in the last 40 years it has better than doubled in value every 10 years.

The simplicity of property investment is that house prices double in value every 7 – 12 years on average and that the tenant and the tax man help you pay for that property while it is going up in value. That means that you make money. It can be made to look complicated in many ways and there are many people that would like you to think it is more complicated than it is, however, this could not be further from the truth.

A look throughout the last 10 years, or for arguments sake the past 50 years shows that Australia has experienced wars, recessions, liberal and labour governments, terror attacks, droughts, floods and so on, yet despite all this turmoil the price of property has consistently followed this market trend of doubling in a 7-12 year period.

With this information I believe we can safely answer the question, “is there a perfect investment property”?

The answer is NO, there are only investment properties. Of course, there are factors of timing and location when building a portfolio, but because the property next door has 50sq/m more land or the bedroom is 10cm bigger doesn’t mean your property and the one next door will not double in value and that they will not get tenants.

Don’t wait to find the perfect property, they do not exist!