Useful tips on what to look for in an investment property for first time investors with real estate expert Nikki McCarthy and architect Cameron Frazer.

Transcript:

Today we're at a property that's just come on the market. 

I think it's a really good property for investors, but I've asked Cameron Frazer to come along and give us his expert opinion.

So Cameron.  This is the lounge room.  What do you think?

Beautiful room.  The first thing I notice are the classic Art Deco features.  You've got the terrific ceiling rose, the steel casement windows, which I love.  These sort of period features are fantastic for someone who really likes that style of house.

When you're looking at an investment property, it's really important to look at the age of the property and the way it's been maintained.  A house like this - it's an older house, but it's been really well maintained.  It makes a fantastic proposition.  

So Cameron.  In this home, the kitchen's already done.  Is that a bonus?

I think the great thing about this, is this kitchen's great, because it works for the house as it is with its two bedrooms, but it's big enough to allow an extension if you want later on in time, to add another bedroom, expand out and keep the original kitchen.  So you don't lose the value of the investment.  It's probably twenty/twenty-five thousand dollar investment in the kitchen.

When you're buying to invest, a house that's had some work done to it requires little investment .  You're going to get it on the market.  You're going to minimise that vacancy rate.  You know, maximise your return really quickly.

So Cameron.  This would appeal to investors? I think it's a really good block size.  

Definitely.  This house lends itself to be rented out right now, as we said with all the great features.  And then later on, it's got the potential to redevelop.  Add similar space.  Add another bedroom.  Expand.  Eventually move in.  Become an owner occupier.  

But still have the space out the back?  Still have the space out the back.

Location is important, so you get that capital growth. This is in a sensational part of Melbourne.  It's in a really good school zone, close to transport, so it's really got everything going for it.

OK Cameron.  So we've got two off street car spaces, really good location and it's an excellent school zone.  

And for me it's a terrific size block of land. I love the period features and it's got that brand-new kitchen and bathroom which make it a really attractive proposition.

So it's got a tick of approval?

Absolutely.