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What is an 'Investment Grade' Property?

​This is a question asked and answered regularly, but interestingly, almost always with a different response. At JLL we pride ourselves on our ability to “think outside the box” and take the road less travelled. It is crucially important to find the “next thing” in property in order to obtain sustainable and consistent growth. Likewise with yield, you cannot always achieve high yields because the fact remains that high return typically equals high risk and in turn possibly limited growth. Furthermore growth and cash flow stability is equally as important, cash flow instability will often quell growth rates over the medium to long term, as people will only wear the cash flow deficit for so long without tangible benefit.

So how does one achieve this beautiful synergy of mind bogglingly complex fundamentals? The stamp of “investment grade” is achieved after carefully analyzing an exhaustive list of equally important criteria and ensuring that they all play well together – sounds easy doesn’t it? Some of the more important criteria includes but is not limited to:

•    Development options;                
•    Local public and private spending;
•    Land size and frontage;
•    Planning considerations;
•    CBD access time;
•    Improvement opportunities;
•    Rental demand and vacancy rates;
•    Historical growth;
•    Supply and demand metrics; and
•    Demographics related to your selected location.

One of the biggest mistakes buyers make is not considering these factors or not understanding them fully. If you are concerned about your ability to make a smart property selection, call the professionals at JLL to help you make the right decision; saving you time, money and a whole lot of stress! Happy hunting!


Josh Coleman
Buyers Advocate - QLD
+61 400 003 504
josh.coleman@ap.jll.com

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