When you’re first looking to purchase an investment property or thinking about expanding your existing portfolio, one of the biggest questions you’ll no doubt ask is where should you look for suitable property. Australia is a large and diverse country, with a range of ever-changing local markets. Sometimes the range and choice can seem overwhelming. Luckily property investment experts have a few tips for finding the right opportunities that will help you to secure and build a successful property portfolio.
Invest in the Major Capital Cities
One of the first essentials that a property investment specialist will tell you is that existing real estate and off the plan developments are a more attractive investment in the inner cities rather then outer suburbs, semi-rural environments and country locations. There are a number reasons for this, including the fact that average capital growth for property in the major capital cities is higher than other areas. In 2013, for example, Sydney’s property market grew at an average rate of 14.5%, with Melbourne at almost 9%.
This growth is currently being fuelled by high population growth in the cities, as well as a return in consumer sentiment and continuing record low interest rates. Generally people want to move to major centres where there are jobs, good transport links and access to schools and entertainment. To move into an area they will either have to buy or to rent a property. This means that despite temporary corrections in the market, over the long-term property in the capital cities – and particularly Sydney, Melbourne and Brisbane – will grow at a steady rate and ultimately provide a great return on investment.
Another good reason for considering property investment in Sydney, Melbourne or Brisbane is the sheer variety and volume of existing dwellings and off the plan developments. When you’re looking at potential investment opportunities you naturally want to be able to review a wide range of property and projects before making your final decision. The property market in Sydney, Melbourne and Brisbane is currently strong, with more developments coming onto the market every day. Don’t forget also that in the city you are more likely to have access to professional property management companies who can help you not only choose and secure a great investment, but also manage it for you over the long-term.
Location, Location, Location
The three cardinal rules of property investment? Location, location, location. As we mentioned earlier, people tend to want to live where they can get easy access to jobs, school, entertainment and transport. Once you’ve decided to look at properties or off the plan projects in a city (or perhaps have decided to invest in more than one capital city), you should then research the most desirable suburbs and streets in which to purchase property. Basic research should include looking at current property prices and predicted growth for the area, rental demand and rents, access to transport, shopping and schools. Much of this type of research can nowadays be done online and through talking to local real estate agents, although it can be a very time-consuming process.
Many property investment companies such as Ironfish have dedicated teams who can provide such data to clients, making it easier for them to choose the right property in the right location. If you are looking at off the plan property investment in Melbourne, Sydney or Brisbane, then having a team of professional investment experts at your side can also mean a range of advantages such as getting access to exclusive pre-negotiated deals, pre-public offerings and exceptional group buying power.