Real Estate Planning with Anna Manning
Investors also have to take into account the important issue of capital growth rates when selecting an investment property.
The higher the capital growth rate of a property then the faster the investor will create long term wealth.
It is a mistake for investors to assume that properties increase in value at the same rate throughout most suburbs.
That is why most investors purchase an investment property in their local area, because they automatically assume that it will achieve capital growth rates similar to the overall housing market.
This is one of the biggest mistakes in real estate investment – investors choose to buy properties locally because they are easier to select and manage when located close to their home.
It is a fact that in most housing markets the annual price difference between the best and worst performing suburbs in terms of capital growth rates can vary between 8% to 12%.
Selecting a property in a high capital growth location is therefore critical to increasing personal wealth through property investment.
Investors should therefore take a ‘global’ approach to the location of their property investment and study past capital growth rates for the local area to help determine the track record of the suburb.
Anna Manning is a Real Estate Agent at Leaders Real Estate Lower Hutt.
p 027 569 2749 e firstname.lastname@example.org