Chapter 7
Selecting the Right Home

The next step in your quest to finding the best investment property is to decide on the actual property type.

Rule Number One is to select a property that is appropriate for the suburb. In other words, if the area is predominantly old style timber homes, then don't buy a modern home that is completely out of character with surrounding homes.

Rule Number Two is to only buy properties that need cosmetic makeovers and not major structural repairs. This style of home can achieve far greater prices, due to their appeal to both homebuyers and investors. Homebuyers tend to get more emotional when purchasing a home.

Their decision is more lifestyle focused and therefore they don't mind paying a fair bit more if they believe that owning the home will help them achieve the lifestyle and status that they are seeking.

COSMETIC REHABS ONLY

The home should have "good bones". In other words, all the major areas should be in good repair, and the home should only require a quick cosmetic makeover to unlock its potential.

Therefore, only look for properties that require cosmetic improvements. Extensions and structural repairs can prove costly in both time and money.

Your aim should always be to add maximum WOW factors for minimum cost. Therefore, properties that require a fresh coat of paint and new fixtures are prime targets for property renovators.

Minor works such as painting, new carpets and landscaping can drastically improve the overall value of the home.

A CLEVER LAYOUT CAN ALSO ADD VALUE

No amount of cosmetic improvements can cover up a bad layout. Always ensure the floor plan is practical. Also, look for potential improvements that can enhance the property.