TOP TIPS FROM BRETT AMOS

17th July 2006

Ensuring you select a property that performs well in any market is the key to coming out on top in the long term - and because a stabilising of Perth's property market is inevitable, investors need to be more focused on selection than ever before.

Capital growth has not been hard to come by in recent years, but now homebuyers and investors need to be sure they are picking up "boom proof" investments that will continue to grow at good rates after the market slows.

Some key factors to consider in protecting yourself from an easing of the market are:

" The best buys are those in the best position. Properties close to amenities like schools, shops, transport and parks will retain their growth over those that are further away.

" Local council upgrades and other planned developments will drive the suburb's growth once the market stabilises. Do some research and find out if there are any plans for the suburb and its surrounds.

" Weigh up the rental demand by looking at vacancy rates as well as the rental vs owner occupier ratio. A lower rental proportion could indicate a higher demand for rental properties in the area.

" Take a look at the area's history and its future prospects. A good long-term track record in growth is often a sign of reliability for the future and a prediction of healthy population growth should indicate rental demand will stay steady.

" Stick to the middle of the road and search for medium priced properties. There are usually plenty of good tenants in these areas and ample buyers around when you want to resell. So, unless you can get it for a steal, it's best to avoid the top end of the market and the lower end as well.

" Snap up properties with development potential and those with a high land to building ratio - they generally offer golden growth potential.

" Favour properties with three bedrooms and one bathroom. Long-term, these properties have proven more successful than the larger homes with four bedrooms and two bathrooms.

With a keen eye, clever scrutiny and some expert help, you can find investment goldmines that will do well no matter whether the market is up or down.

For more information, please contact
Mr Trevor Dunkley
Director
Property Wizards
trevor@propertywizards.com.au
Tel: (08) 9381 7450