The ideal properties to invest in are properties in areas where it is cheaper to buy than rent. This gives a better chance of strong capital growth and higher returns. But also look out for:
• Houses and apartments that are close to employment centres
• Properties that are positioned close to transport, schools and areas where there are plenty of jobs
• Homes occupying good positions but where inexpensive renovations would help them produce higher rents
• Properties where an extra bedroom can be created from the existing floor plan. This can add substantially to the yield and subsequent capital growth (when you sell)
• Real estate that is poorly presented or marketed and may not therefore realise its full market value.