Investing in the Right Property Now!

Margaret Lomas

ISBN 9780987084910

See for financial advice services.
See for property management tracker (free for 1 property).
See also 20 Must Ask Questions for Every Property Investor, Margaret Lomas .

Destiny FinSoft is available for download on the web site. It includes a number of calculators for doing one-off calculations. These include depreciation, tax, loan and borrowing capability calculators. It also includes a built-in web browser for accessing the Destiny web site and the ATO, but not general web sites since the URL bar seems to be uneditable. It appears to be a tool targetted at a Destiny consultant visiting a client.

Determine if the gross regional product for the area (esp. local council) is above the gross domestic product.
Does the property have everything going for it?  (Refer to "20 Must Ask Questions for Every Property Investor")
  1. Cash flow for the property.
  2. Is there a low vacancy rate for the area
  3. Are there funded infrastructure projects in the area
    State and local government (presumably info from govt web sites)
    Carefully distinguish between funded and planned projects
  4. Is there positive population growth for the area.
    (Local council should have population projections)
  5. Is there a lot of other development going on, or planned, that will lead to an over-supply of rental properties.
  6. What are the trends for the area, and has the area already peaked
  7. Are there good economic indicators for the area
  8. Is there a town of size at least >50000 people within 30mins drive, and local town has >5000 people
  9. Is there more than one industry in the area. A single industry/plant supporting the area lads to high risk.
  10. Is it a niche market (tourism, retirement village, student) where the size of the market is smaller and perhaps riskier
  11. Is the property a good fit for your personal risk profile (refer to the Destiny web site for calculator)
  12. Will banks etc lend for property in the area? (small towns and niche markets are problematic)
  13. What is the market value for the property compared to the asking price. Slowly bid towards the market price irrespective of the asking price).
  14. Who was the builder/developer?
  15. Is there a rent guarantee? (if so, run)
  16. What property management arrangements are available
  17. How old, and in what condition is the property?
  18. Is it tenant friendly
  19. Is the title on the property 'normal'?
  20. Do the numbers add up for the property?