So anyway , back to property .You've certainly starting with the...

So anyway , back to property .

You've certainly starting with the right idea el3ctro . Lots of research ( the net helps a lot these days ) and talk to everyone you can. While the agents always want to sell you something , you can learn heaps from them if you talk to them enough . Effectively , it helps to learn a bit of real estate speak.

You need to decide that you want to be in this for a while . Typically , it's a 10 to 20 year game to be really effective. Actually , thanks to our mate MF who posted the shares vs property thing , residential property returned 6.8% pa post tax in the last 20 years . At that rate that's roughly doubling every 10 years . So based on those numbers , you can see ( and calculate ) an expected return and monitor it as you go.

You need to think about risk vs return. The sensible thing to buy is the most popular type of property in the most popular areas .

People need work options so that makes cities or very large regional centres the best choice.

People need to be close to public transport . A lot of families can't afford 2 cars so if hubby can catch pt , it's a bonus.

Schools. They need to be good ( remember catchment addresses ) and close. If the kids can walk to school because both parents work , another plus.

These types of property are also most downturn resistant . People have to live somewhere and the 3 or 4 bedder in the burbs is it . Families tend to nest so they will be there long term although the wear and tear can be high with little kids.

Good references . If it's a decent property there should be a bit of competition. References can be suspect however a good documented rental history goes a long way. Some rental managers have a good feel for this , some are slack so you need to be involved in the selection process.

That's enough for one post.