Amy Lunardi and Pete Wargent, expert property buyers agents, explain what we mean by “high quality” property assets and whether or not the idea of “investment grade” is a myth.
This is another 🧠 educational episode of The Australian Property Podcast.
On this episode of The Australian Property Podcast:
- Investment grade property 101
- Is it just marketing?
- What it means to buy a high-quality asset
- Do house and land packages make investment grade?
- How important is the location?
- Why does it help?
- What about your property strategy?
- Is everyone’s definition of investment grade different?
When buying a property, while there is no hard and fast number, because it depends on many factors, having 50%+ of the property’s value in the land would typically be considered good. The theory is basically that land appreciates and buildings depreciate – so having a building on a very cheap block may not deliver the results you want. If the land value is $100k, even a sharp 20% rise in land values doesn’t move the needle much. Noting Amy’s point that investment grade for one person might be different for another depending on circumstances. – Pete Wargent, Buyer’s Agent.