As we specialise in buying investment properties, our knowledge is finetuned to that market. Over the years we discovered that the success of a good property investment comes from working with 8-main keys and they are:
Key 1: Buy in the Median Price Range
Just like there are tens if not hundreds of property markets within Sydney there are many median price ranges. As we deal in competitive, blue-chip suburbs we tend to work with budgets that are between $500,000 – $850,000.
When we meet clients with larger budgets, our advice is the same, “it’s better to have two properties in the most competitive price range than one glamorous abode that fewer people can afford to buy or rent”.
The higher the price tag, the less buyers and tenants there are.
Key 2: The Right Spot – Blue Chip Suburbs With A Vibrant Heart
Working with the Residex report we stick with blue chip locations within an easy commute to Sydney’s CBD where young professionals want to live; the exciting beaches of the Eastern Suburbs, the stunning Lower North Shore and the vibrant cafe society of the Inner West.
Key 3: The Right Tenant
To go with our blue chip locations, we want blue chip tenants! The young professionals Empire target are earning a good wage but aren’t ready to forfeit lifestyle for mortgage – cash is king for them! They work hard and want to come home to nice place that has the beach, bars, cafes and restaurants at their doorsteps.
So far, this strategy has lead to a 100% occupancy rate.
Key 4: Two Bedroom Apartment
It all comes down to economics and good old household budget! One person paying $450 p/w on a one bedroom apartment stretches their budget far more than two people paying $600 p/w.
A 3-bedroom apartment is just too big – sharing with one person is fun but as they say, three is a crowd!
Key 5: Renovating
Anything can be rented out for a right price, but to who? A grotty apartment won’t attract those coveted blue chip tenants but once a place is renovated, the queues to sign a lease can be impressive.
Renovating will bring more capital gain and growth but it’ll also attract a better tenant.
Key 6: Parking
Yes, there’s public transport but the reality is, we all like to drive and we all like to park in our building. You’ll have more tenancy applications with that all important spot than without.
Key 7: Small blocks
Small blocks are more manageable, more intimate and often have more street appeal. However, the really important thing about a small block is lower levies – why pay for your tenants’ pool, gym and other expensive facilities?
Key 8: Older Blocks
With older or second hand blocks you tend to know what you’re getting. Whatever is going to go wrong has gone wrong and they’re a more honest buy. There’s also more potential for adding value through renovating the apartment and also the whole block through rendering, adding new balconies, updating driveways etc.