What type of investor are you?


Before you rush out and look at properties consider what is right for you. There is no stock standard answer that is correct. It depends on many factors. What’s right for one person is not for another.



  • Your experience investing – Do you have other properties or have had in the past and know the pitfalls or benefits of certain types of property.
  • Your age – What stage of life are you at? This may impact when you will likely liquidate your investment which may in turn impact the type of property you choose. Perhaps a lower risk for an older person, higher for a younger person.
  • Level of finance – Are you putting any of your own funds into the investment or borrowing against other equity. This can impact on costs & monthly mortgage payments.
  • Your expertise – If you’re a tradesperson then doing some improvement or repair work may be an easy thing. Alternatively if you have to pay a tradesperson to do this type of work it can again impact the return you receive & your cash flow.
  • Your time – Do you have time to be working on the property? If you’re time poor then a “set & forget” type of investment may be more attractive.
  • Your cash flow - Do you know about the types of costs to expect with investing. Do you have surplus money to top up the mortgage in months where costs may greatly reduce rental income. Also consider if it’s likely that your income may change greatly
  • Your tax position – If you are looking to reduce tax then that is a factor in your choice. Negative gearing can benefit some but for others it’s a no no.


After considering the above then consider how the different types of properties will impact each of these items differently. Once you know the answers to the above they then may steer your investment choice. Now you’re getting closer to knowing which properties you should be looking at next week at the opens. Different types may be:


  • Brand new or near new constructions – Properties such as new units or homes are usually low on maintenance and repair costs and can offer different tax advantages than established properties. These properties are in a lot of cases at the higher end of the market in the area you’re looking in.
  • Older homes – If you’re handy then these may be for you. If not be careful, more of the rental income than you bargain for may be used to maintain this type of property.
  • Sub dividable properties – Once the domain of the serious developer over the last 10-15 years many “mums & dads” have tried hand at developments. It can be very rewarding, but also can end with little or no profit. The costs involved are usually in the tens of thousands and the time frame can be years.
  • House on original block – You may want the good old fashioned block with a front & rear yard and a garage down the side.
  • Off the plan – Very popular in inner city area where multi story developments are selling sometimes years before completion.
  • Commercial – Many investors only look at commercial property because they expect higher returns. With that can come higher risk & in some cases slower growth.
  • Vacant land – No tenants means no issues but then the returns not great. Sitting on land can be a great idea for some, especially if your borrowings are low for the property.
  • Market level – A different one, but consider if you’re looking at the bottom of the market so the loan is lower then you may have a big upside to the property. Alternatively the property may be a maintenance problem and in some cases hard to find the right tenant.
  • Appealing to you – Yes in some way you do have to like the property but this may see you buying something that doesn’t appeal to others. Remember this is an investment which you want to sell for profit later. The more buyers that the property appeals to the better the long term result.


So what to do? Seek advice first. This may be from your accountant, solicitor, bank or other person. Ask us…as estate agents we are involved in the market every day & can tell you exactly what has worked and not for many local investors. We can tell you very sale price for every property and assist with market research. As an expert on the local real estate market we are more than happy to pass on our knowledge of each of the above property types & how they’ve performed. At Bell most of us are property investors and know exactly the situation you are in. But note that if you looked at all of our investments they are all very different. It’s what’s right for the individual that matters. Once you have this figured then you can get out on the hunt for the right one. Or just give us the criteria & we’ll find the right one for you.


Tony Fanfullla


Disclaimer: None of the above is to be considered personal investment advice. This article is of a general nature and you should consider professional advice before purchasing.