Think Like an Investor
While researching to compose this week's newsletter I was reminded of a previous newsletter we sent close to 2 years ago. And after reading, found that it is still relevant...
Legendary business magnate Warren Buffett says, “Someone’s sitting in the shade today because someone planted a tree a long time ago." Meaning, a wisely chosen asset today will seed and grow into a valuable return tomorrow.
In the heat of the current market, with buyers swarming and limited stock, emotions can take over. Of course an emotional connection to your dream home is essential, it’s the place where you are going to grow and celebrate your family.
But it’s important to put your investor’s hat on and consider the long term because your home is your biggest investment and asset.
These are the five key considerations investors make;
Land Size – the design and tastes of architecture will evolve constantly but land never goes out of style. Oprah says she buys land ‘cause God’s not making anymore’
Location – A house can be replaced or renovated but its proximity to the ocean, amenities and its position within the street and suburb can never be replaced
Potential – Does the property have the potential for extension, renovation, subdivision or the addition of a granny flat
Rental Return – Considering rental returns can help you view the home more objectively as an asset. Also circumstances change, its good to have a plan B and know what kind of rental return you can expect
Floor plan – a sensible and flexible floor plan that flows nicely but is also workable for renovations or extensions
by Elise Doyle on 19 June 2015
Filed under Places