I-Smart Property Criteria
Because you are developing your own investment property, it becomes easier to choose a property that enhances your holdings. However, I-Smart Property criteria scrutinizes your next property investment so that you are better off with the lowest possible risk. To be able to embrace the I-Smart Portfolio Automation strategy well, the following 5 property criteria must be met by our selectors to ensure that you get the most out of your investment.
1. LOCATION
- Within 15km radius from CBD.
- Amenities: Close to schools/university, shopping, recreational activities, health care, etc.
- Transport: Within a 10 min drive to public transport, or walking distance is even better.
- Employment: A strong local employment hub within a 20 min drive from CBD.
2. INFRASTRUCTURE
- Federal/State Government investments.
- New road/services infrastructure.
- New shopping centre or redevelopment of existing one, new schools, hospital, university, parks.
- Other key capital growth drivers in the area.
3. CONCEPT TO COMPLETION
- Find an Infill site
- Conduct thorough due diligence
- Local area review for investor returns
- Feasibility analysis
- Get approvals from local council
- Construction by a reputable builder
- Settlement
4. INVESTOR ESSENTIALS
- Capital growth 4-9% p.a. (targeted average)
- Rental return 5-8% p.a. (targeted average)
- Vacancy rate 0-2%
- Depreciation maximized - new property
- Low fee - Landlord Insurance, Property Management, Body Corp
5. DEVELOPMENT FUNDAMENTALS
- Townhouse size: 130-150 sqm underroof
- Land size per townhouse: 180-250 sqm
- Two storey, 3 bedroom, 2.5 bathroom, single garage
- End value up to $500,000.00
- Comparable sales and rental appraisal done
- Tenant: Mostly professionals with young families
