The range of properties you can buy is mind-boggling, and it can get weird. Sometimes, a unit right across the road can be worth 50 per cent more. That’s why hunting down good property investments is an art, and here are some of the methods the experts use:
Picking Based On Rental Yields, Or Capital Gains
The two main ways you make money from a property are rental yields (the amount of rental income it generates, relative to its price), and capital gains (how much more you make when you re-sell the property).
A good investor knows how to consider both of these, rather than just fixating on one of them. For example, you might think that industrial properties with short leases (60 years or less) are a bad deal; after all, they’ll probably be worth less than you bought them for, due to the limited lease.
However, industrial property can generate