I think anything pertaining to location or suburb, or position within a suburb, is the most critical decision you have to make when buying an investment property.   You can generally change properties or decorate apartments but you can never change the location of the asset.  My recommendation is if you’re going for growth, you have to find a suburb that’s going to outperform and therefore the selection of that area is critical.

There a number of things you need to take into consideration when you buy a property, for example what are you buying it for - growth or yield?  If you’re buying it for growth you need to be in an area that is going to outperform. Therefore you need to be indentifying the next fast growth suburb, preferably in a market near you.  Once you’ve identified the location, which is by far the most important asset that a property has, you look at the individual characteristics such as the condition of the property and the rentability. Most people from an investment perspective will be renting their property out; therefore it needs to be easily able to be rented.
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My personal advice on where to buy is generally closer to home, which means I like capital cities and major regions. I recommend buying closer to where you live as generally you have a better handle on the area and the location. Very few people that have held property in the medium and long term that I have known over the last few decades in real estate have lost money; those that have lost money have generally bought in areas they know nothing about and often are far away from where they live. I like buying closer to home -  in big regional cities and big, metropolitan markets.

I don’t think there is a perfect investment; I think there are really great investments and better investments.

A lot of people often say to me, ‘should I buy a house or an apartment.’  It often comes down to their particular situation. I personally find that a lot of the time housing provides good, strong growth in terms of capital growth on the asset. However apartments are easier to manage and new apartments can often offer up good tax deductibility. I think you have to look at your personal situation, decide what sort of investment you want and ask questions such as are you looking for growth or are you looking for yield?

I had the opportunity to catch up with Peter Switzer recently on Sky Business Channel. Hope you enjoy the interview.

Please note, the video is used with permission of Switzer Media + Publishing.

We’re in a state of flux with ongoing uncertainty over the European debt crisis, job losses here at home and the banks signalling that the days of routinely following the Reserve Bank’s moves on interest rates may be over.

Despite these events, buyer enquiry is considerably higher with more people attending opens in January and February.  Australia’s largest mortgage broker AFG, reports a 40% increase in national mortgage sales in January (up 14.5% in NSW) compared to the corresponding period last year, when natural disasters significantly impacted sales.

We are seeing buying enquiry up significantly. The under $1M market is still the strongest segment but there’s new interest up to $2M and even beyond

As we enter the New Year and the possibility of selling your home, upgrading or downsizing in one of the busiest selling periods - choosing the best agent to sell your property is the second most important decision in real estate (after choosing the right property to buy). 

But from my experience many people are too casual in their approach to this crucial decision.  They ring a couple of agents and choose the one who gives them the highest valuation or has the lowest commission.  Create a series of questions that you want to ask agents, and interview a few as if you’re considering them for a job.

15 QUESTIONS TO ASK WHEN HIRING A REAL ESTATE AGENT

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I’m feeling optimistic about the Australian property market in 2012.  We’re not in for any major growth in prices but there are positive signs ahead.

Two interest rate cuts will always stimulate the more affordable end of the market – which is a positive thing for the bulk of the population living in and buying homes under $1.5M-$2M.

Recent figures from Australia’s largest mortgage broker, AFG, show a big boost in the number of home loans taken out in the month of November following the first rate cut on Melbourne Cup Day.

New mortgages increased by 18.4% nationally (26.7% in VIC, 20.8% in QLD, 16.4% in NSW) compared to October, and while that is partly due to November always being a high volume month, I think the

We’ve noticed a marked improvement in buyer enthusiasm following the first interest rate cut but it won’t be enough on its own to spark some serious growth.  People are looking for more good news to regain their confidence to buy and sell.

Interest rates are definitely an important factor in people’s purchasing considerations, particularly in the sub $1.5 million market, but it’s not the only one.  There are other macro issues that are probably a greater influence on people's current psyche.  The European problems are a big dark cloud and if they’re resolved I think that will have a much greater positive impact on the actions of buyers than a quarter percent rate cut.  

While we continue to wait for

I chatted with Peter Switzer this week about the QLD property market. I hope you find it informative. Please note, the video is used with permission of Switzer Media + Publishing.