With interest rates at an historic low of 2%, and with less competition in the property market due to the adoption of strict APRA lending standards, opportunities in Australia's hot property market abound for 2016.
1) After you loan is approved, consider the various locations suitable for investment, depending on your strategy. Are you looking at a buy and sell scenario, buy and hold or something to renovate or redevelop?
2) Understand the market cycle and key investment factors of your target locations. For example, an ideal location may have recently emerged from a slump and is poised for strong growth due to increased investment, job creation, infrastructure expansion or affordability.
3) Within these key locations, determine which property types have low supply and high demand, both for rental and re-sale. This will ensure a low vacancy rate and make a timely sale likely when you're ready to cash in or revalue your property for the next investment.
4) When selecting individual properties it's imperative to look closely at comparative property performance, recent sales and rental yields. A lot of good advice can be received from agents and investment advisors, but also look at market reports and performance indicators. They can be a great tool to gauge whether the investment stacks up.
5) Ensure you're paying a fair price and get an independent valuation done.