Building Your Property Portfolio: Strategies for Success in 2017

As we step into a new year, the property market presents fresh opportunities for those looking to invest. According to property investment expert Chris Gray, 2017 is an ideal time to dive into real estate. With the right approach, you can either start your property portfolio or enhance your existing investments. Here’s a comprehensive guide to navigating the property landscape this year.

The Right Timing: Seizing Opportunities

Chris Gray, the chief executive of Your Empire and host of Your Property Empire on Sky News, emphasizes the importance of timing in property investment. Rather than waiting for market fluctuations, he advocates for taking action when you have the financial means. “One of my best investing tips is to buy when you can afford to buy and hold on to an asset,” he states. The key takeaway here is that while purchasing at the right price is crucial, the duration of your investment in the market is what truly matters.

Rentvesting: A Flexible Wealth-Creation Strategy

For those who may find it challenging to buy a home in their desired location, Gray suggests considering "rentvesting." This strategy involves renting in a preferred area while investing in a more affordable property elsewhere. “With house prices predicted to increase in several capital cities, rentvesting is a flexible wealth-creation strategy worth considering,” he explains. This approach can be particularly beneficial for first-home buyers, as it allows them to enter the market sooner rather than waiting to save enough for a home in a high-demand area.

Choosing the Right Location: Blue-Chip Suburbs

When it comes to selecting investment properties, Gray advises against chasing hot spots that may not yield long-term growth. Instead, he recommends focusing on blue-chip suburbs, which are known for their stability and consistent appreciation. “It’s much safer to invest in blue-chip suburbs which offer a better guarantee of consistent growth and steady rental returns,” he notes.

To make informed decisions, Gray suggests identifying three blue-chip suburbs and inspecting up to 100 homes before making a purchase. This thorough approach can help you find properties that meet your investment criteria.

Planning Your Long-Term Investment Strategy

The beginning of the year is an excellent time to outline your long-term investment strategy. Gray encourages investors to have a clear understanding of their financial position and to identify ideal suburbs and property attributes before starting their search. “This will give you a goal to work towards and help you better assess the suitability of various properties as potential investments,” he advises.

Value for Money: Beyond the Purchase Price

When evaluating potential properties, Gray emphasizes the importance of seeking value for money rather than simply looking for the lowest purchase price. Properties located away from noise and main roads, with two or more bedrooms and ample natural light, tend to be in high demand and attract prospective tenants easily.

Seeking Professional Guidance

Navigating the property market can be complex, and seeking professional help is crucial. Gray recommends working with experts who have a vested interest in real estate. “Try to select experts who invest in property themselves, as they will be able to provide you with the relevant pros and cons,” he advises.

Insights from Local Experts

James Karantonis, director of Buxton Ashburton, highlights that every suburb in Boroondara and Stonnington is considered “blue chip.” However, he notes that finding suitable investment homes can be challenging due to high demand. For investors looking for properties under $1 million, he suggests villa units, which have gained popularity among investors, young couples, and downsizers.

For those with a budget of seven figures or more, Karantonis recommends seeking single-fronted Victorian or Edwardian properties with character and great locations, as these are easier to tenant. He also advises against larger apartment developments, which may not offer the same value for money.

Conclusion: A Year of Possibilities

As you embark on your property investment journey in 2017, remember that the right approach can lead to significant long-term rewards. By understanding market dynamics, employing strategic planning, and seeking professional advice, you can build a successful property portfolio that meets your financial goals. Whether you’re a first-time buyer or a seasoned investor, this year holds the potential for growth and opportunity in the real estate market.