Identifying a profitable investment.

Arguably the hardest aspect when it comes to investing in anything. Identifying where to invest your

money, so you make a nice return.

Here are a few things that you must consider when purchasing property.

Think long term. You are probably saying "thanks captain obvious", but you would be surprised how

people tend to miss certain factors that affect a long term real estate investment. So, what factors to

look for in long term property investments:

- Existing surrounding amenities: Things such as schools, public swimming pools and parks all add

value to surrounding real estate. Now, it is one thing to know that these exist, but it is another to

understand the quality they hold. Is the school successful and in demand? Are the parks big, safe,

popular and disability friendly? What programs does the public swimming pool offer, if any? You will

start to realise that there is more than meets the eye that impacts on the value of an amenity.

- Future developments: On top of the existing amenities mentioned above, do some personal digging

and find out where the community is heading. Ask neighbours of the potential property you are buying

about the community, what are the pros and cons. Here is an example: Suburb A currently has a

primary school, 2 parks and a community swimming pool. The local council has announced that in 3

years time they plan to develop a high school as an extension on the local primary school. Imagine

the positive impact this would have on local real estate. A new high school could also bring things like:

- increased buses & bus stops.

- More established families moving closer to the school. These families could be quite large and

therefore a lot may renovate or even develop homes.

- More business for the local pool.

- More business for local shops. New shops may even emerge = new jobs in the area.

- With a high school may come a sports field, either as part of the high school, separate or both.

- With an increased population from the likes of a new school, forces housing prices up, but more

importantly, land value up! Look to identify properties with the potential for sub division. This can be a

hugely profitable investment.

Lets take a look at this situation over a 10 year period. You buy a property in an already decent

suburb that has plans for future developments. The high school opens up, new shops open up, the

suburb becomes increasingly in demand. Fast forward 10 years you sub divide and are now making

huge returns on your initial investment.

Yes this is an amazing hypothetical situation in terms of real estate investment, but the point is to

outline the potential if you play your cards right and understand every aspect surrounding your

property. Correlate all potential factors and you will ensure you make a profitable property investment.