Generally, investment properties are bought as investments and not as owner-occupied residences, property investor are able to take the emotion out of the decision of where and what to buy.

As you want to benefit from as much capital appreciation and rental returns as possible, the first rule is to buy in a growth area. Experts define suburbs located up to 10 kilometers from a city's central business district as likely to be in a growth area. The best strategy is to visit a number of areas to get a feel for what they offer. As you will be renting out the property be aware of what tenants look for when they rent such as access to transport, shops and leisure facilities. An attractive property in a sought-after area will also ensure strong rental returns and ongoing tenancy.

What to Buy?

While owning a house may be nice, apartment or condominium units are far easier to rent out. They are also easier to maintain there's no lawn to mow, and when things go wrong in the building such as flooded pipes, any expense is shared among the other owners. (subject to where broke?)


Where to Buy?

Properties with a panorama view are always more desirable than those without, but the bottom line should be what you can afford to buy and what rent you expect to be able to charge. Over-committing in order to get a waterfront property is not a sensible move if there aren't any tenants around that can afford to rent it from you.

Zoning is another factor that can affect what you pay and what you get when you sell. Properties on residential land zoned for are popular as this protects your investment from other non residential developments that might undercut its value.

Look for a property that can be sold quickly if you find you have to sell in a hurry. Again look for additional features that are attractive to buyers such as an apartment with a balcony, internal laundry and covered garage.