The Commonwealth Bank of Australia (CBA) has launched an online property investment tool that simulates real-time exposure to the property market, with users not having to put their own capital at risk.
Investorville, which combines real data with gameplay, was designed to educate potential investors about property investment and remove common misconceptions about the market, the bank said.
CBA general manager for consumer marketing Mark Murray explained that buying an investment property can seem daunting for many people, and that Investorville allowed users to “try before they buy”.
“The properties and data are reflective of the Australian property market and the types of properties available,” he added.
Investorville targets existing homeowners who might feel insecure about buying an investment property, as well as those who already own one, Murray said.
At the same time, property experts called for investors to “leave their ego at home” when investing in property, because it could help their portfolio grow faster.
Kevin Lee of Smart Property Adviser said many are seduced by an impressive address instead of sound investment fundamentals.
Lee claims this was driven by the “desire to impress”.
“Generally speaking, these ‘dinner party’ properties end up being massively negatively geared. Negative gearing to this extent is not a smart strategy and it’s the number one reason why so many Australians own only one investment property,” he added.
Lee believes affordability is the most important consideration when investing in property, because both tenants and buyers would be easy to find.
