There is an abundance of choice when it comes to residential investment property, especially in the major capital cities around Australia. From existing houses, apartments and townhouses to off the plan developments, the country is currently undergoing a surge in market activity, and savvy investors know when and where to grab the right opportunity. They also know that not all deals that come along are good ones. So what do they look for when choosing investment property?
Align Your Investment With Your Strategic Goals
If you talk to a property investment specialist the first thing they will ask you about is your long-term financial goals and investment strategy. Smart property investors are in it for the long haul, not for short-term gains. They know that local market fluctuations and the property “boom and bust” cycle matter less than following a 10 to 15 year plan that maximises capital growth as well as income potential. This means that any investment property you consider should tick a range of boxes when it comes to sustainable long-term capital returns and high rental income.
Good long-term property investments are ones that are:
- In growth areas in capital cities. Major capital cities such as Sydney, Melbourne, Adelaide, Perth and Brisbane provide safer investment opportunities than regional cities or country areas.
- Located in areas with high rental demand and low vacancy rates
- Close to amenities such as shopping centres, schools and have good transport links
- Considered to have high tenant appeal, such as a brand new apartment development
- Relatively new or part of a brand new development as they will require less ongoing maintenance and costly repairs than existing, older property
Don’t forget also that any investment property you consider must be within your budget. Looking at property that is over and above what you will be able to afford or looking in locations that will stretch your budget needlessly is a waste of time and can distract you from finding a property that will fulfil your future financial goals. One advantage of off the plan property projects is that if you are interested you initially only have to make a small deposit to hold the property until the development is completed. This means that you get time to improve your finances before you have to settle the full amount for the property.
Get Expert Assistance
Any investment option you look at will have advantages and disadvantages. One of the keys to finding the right property for you is research – learning as much as possible about the local property market, demographics, as well as macro and micro economic conditions that may affect the market. Sometimes if you’re just starting out, the sheer amount of research you have to conduct to keep up with current events and movements within the market can be overwhelming. Getting expert assistance from property specialists, especially ones such as Ironfish who have their own dedicated team of researchers, can help you to sift through the information you don’t need and find the data that will help you to make the right investment decisions.