Who Wants Sexy Property Investment?

Graeme Salt Brokers Leave a Comment

Graeme Salt - Origin FinanceMy kids call me a dag and my wife says I have the flair of Val Doonican.  But, with investments, that is what is needed.

I have just read an article in the UK media about the quality of the homes developed by Kevin McLoud, the presenter of Grand Designs.  Personally, I like the show, but the article claims his properties are of poor quality.

When it comes to property investment, quality is everything.  Sexy may not be what you are looking for.

The other week I heard of an investment property in Brisbane apparently designed by fashion icon Alex Perry.  I am sure that Alex Perry designs some great womenswear, but what makes his work determine if a property investment is successful or not?  Let’s face it, why should a property designed by him give a better return than one designed by, say, celebrity chef Neil Perry? Or maybe even former tennis ace Fred Perry?

Two things determine whether a property investment is successful:

  • Capital growth
  • Rental yield

It’s just the same with shares where its

  • Capital growth
  • Dividend yield

These can all be calculated on spreadsheet and then you can work out the quality of a property investment.  Yes I know that’s not sexy, but that is the only way to calculate if an investment is good or not.

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