It’s a busy time for property investors as they near the end of the financial year. But there aren’t many investors in the current property market, due to people being cautious about property investment.
Still, there is reasonably tight vacancy rate that assures the investor a large selection of keen tenants. This definitely is getting renewed interest from investors in buying rental properties to cash-in on the favourable rental market.
To better understand the state of property investment the following are main points for property investors:
- Better investments are more preferred in suburbs which have a consistent population growth, such as near the city or fast growing regional centres.
- Prospective investment properties should be easy to maintain.
- Close to public transport, shops and schools. The potential of educational institutions and community infrastructure can increase the value of the investment property.
- An ideal investment location is where the demand for rental properties exceeds the supply. But investors need also to balance the cost of the purchase with the return on investment based on the rent in that location.
- If a property is chosen with prospects of good grow in value, it can be an added bonus of capital growth to the property in addition to the negative gearing (tax deduction) you can receive.
- Another tip to good property investment, is to look for under valued houses in a pricy suburb or in a suburb close to a established suburb.
- Re-developing properties is another good way to maximise your property investment. Choosing one block with re-development potential for multiple blocks can maximise your return.
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