Karen Van Lawick, of Ray White Real Estate, Gladstone.
Karen Van Lawick, of Ray White Real Estate, Gladstone.

Agent knows what makes a good investment in Gladstone

RAY White Gladstone's sales agent Karen Van Lawick has 14 years experience selling property and personally building her own investment portfolio.

Having firsthand experience with the property market in Gladstone, Karen knows what makes a good investment with her experience in Gladstone's property market.

This week Karen shares her knowledge on investment property in Agent Insight.

TIME and time again we are asked for the elusive positively geared property.

I think if the investor is trying to find a property purely based on return this has the potential to be a bad investment.

There are so many smart things you can do to a property to achieve a higher return. The first thing I would look at when buying an investment is the suburb and what the resale is like as well as the social economics.

For instance, is it made up of mainly rented properties or owner occupiers? 

Your resale is always going to be better if people are buying into a suburb to live there themselves.

I am always mindful of my resale on any property I am about to purchase, especially if I am looking at spending money on it.

Next I would look at what you can do to this property to get the maximum return.

It may be that if you put air-conditioning in you may get more rent. These things are surprisingly not expensive and can make a big difference to what a tenant will pay.

I see there are two types of investors - those who are looking at short-term gain and those who are in it for the long run.

Short term investors are the ones who need to be mindful of their resale, and need to ensure they don't overcapitalise if they are buying an older property and spending money on it.

The long-term investor probably doesn't need to worry as much about resale as the market usually looks after itself.

Traditionally in Gladstone our market has doubled every 10 years.

I will use a property from Ward Cl I sold as an example. In 2004 this property sold for $185,000 then in 2012 it resold for $420,000.

Then a unit in Roseberry St first sold in 1996 for $65,000 then again in 2007 for $195,000, and it just resold in 2012 for $310,000.

So as you can see, if you can hold on and ride the market and not panic, your investment should pay off in the long run.

And with Gladstone having one of the strongest rental markets nationally, it makes sense to invest here.