How you found your investment property has a major impact on the returns you may receive, so the type of loan used to buy the property should be chosen carefully.
There are many reasons why investing in property continues to be a popular choice and is seen as one of the best ways to invest money in Australia.
“If you’d prefer to access property on a smaller scale, you could consider opportunities that allow you to purchase a portion of a property alongside other investments – such as investing in property through the Australian Stock Exchange (ASX). Some benefits of investing this way include greater liquidity, diversification across different assets, and lower transaction costs. However, be aware that share prices rise and fall daily, unlike bricks and mortar which can be seen to be less volatile.” (amp.com.au)
Tips for buying an investment property (amp.com.au):
- Be clear on your goals
- Do your research
- Set a budget within your means
- Check your credit history
- Set your timeframe
- Decide who’ll manage the property
- Consider whether you need insurance
- Budget for the little things
Alternative ways to invest in property (amp.com.au):
- Real estate investment trusts (REITs)
- Invest in home construction
- Self-managed super fund
Monaymag.com.au listed Five property trends for 2019: what to expect this year
- Sharp fall in investor-dominated markets
- Slow movement in the first home buyers’ market
- Established markets to experience higher demand
- Rent will start to climb really quickly
- No changes to negative gearing if Labour elected
Now is the perfect time to invest
Finance rates are low and will probably go lower, and property prices have dropped over the last 18 months.
“The extraordinary house price growth Sydney has recorded over the last property boom is clearly now receding, and dwelling prices have fallen in some areas, but this has to be put into context with the spectacular growth Sydney experienced over the previous 5 years” (propertyupdate.com.au)
“Sydney residential real estate turnover over the past year was the lowest it has been over any of the past nine years due to a significant fall in property sales. Over the past year, 4.8% of Sydney housing transacted compared to 6.0% a year earlier. Turnover remains much greater in regional NSW however, it has also fallen over the past 12 months from 7.5% to 6.6%, the lowest is has been since mid-2016. At the same time auction clearance rates fell, however as at late February the Sydney home auction market started to show early signs of a revival with early-season buyer activity clearly on the rise.” (propertyupdate.com.au)
Which Sydney areas are worth investing in?
Propertyupdate.com.au listed top 4 places to invest in Sydney:
- Upper North Shore
- Lower North Shore
- City and East
- Inner West
“South of the harbour are the desirable inner suburbs and densely populated beaches, including Bondi Beach. North Sydney, connected to the CBD by the Sydney Harbour Bridge and tunnel, is home to a thriving business district and some of Sydney’s most affluent suburbs, including the Upper and Lower North Shores. According to the Real Estate Institute of New South Wales, the suburbs of Bellevue Hill, Vaucluse, Palm Beach, Dover Heights and Mosman were amongst the best selling Sydney suburbs for property investment in 2014 – not surprising, given they are all waterfront localities within the city’s inner ring.” (propertyupdate.com.au)
“Changes in positioning of major companies to outlying ‘mini-cities’ like Parramatta may see a shift in buyers heading to these cheaper housing areas and employment opportunities. Developers have anticipated this, but as is often the case, they’ve gone overboard and there is now a significant oversupply of new and off the plan apartments in Parramatta.” (propertyupdate.com.au)
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References:
https://www.amp.com.au/personal/hub/grow-my-wealth/investing-in-property.html