I suggest suburbs with high rental demand in hotspots and that you then look to acquire one or two-bedroom apartments in good complexes . Sometimes one-bedroom units actually generate higher yields , so I would prefer to have two one-bedroom units than one two-bedroom unit .
“ Take your budget and spread it over a mix of properties , rather than tying it up into a single property . If you want to minimise risk then property investing , like all investing , requires diversification .”
A professional estate agent can advise you where property can be acquired at reasonable prices , but bear in mind that bargains are hard to come by in good areas . It is better to pay a market-related price in an area which has shown price resilience under difficult economic conditions . It is also not sound investment logic to buy the best property in the area . Properties which are best suited to capital growth often cost more and offer a lower yield , while those better suited to maximising yield often cost less and offer lower capital growth prospects .
When buying a sectional title property , obtain the latest Body Corporate financial statements from the managing agents , which will give an accurate picture
SA Real Estate Investor Magazine AUGUST 2022 83