Residential property is one of the most popular asset classes for investment in Australia. We love bricks and mortar in this country, however from our observations over the years, it seems that not many people are investing in property particularly well.
The big ‘elephant in the room’ is that financial planners don’t seem to want to talk about the specifics of property investment, yet property is the favourite nest egg of most Aussies.
This is why most property investors are either self-guided (using mostly guesswork) or they are being ‘sold’ property by people with different agendas.
We have an in-house Qualified Property Investment Adviser* (QPIA) at Infocus St Leonards who can provide guidance and clarity to people considering property investment.
For example, the decision of where you will buy is a lot more important than what you will buy. We often get asked, should I buy a house or a unit and the answer is always a one-word question, where? Now there are a few variables that will guide you to ‘where’, namely your budget, cash flow requirements and your investment timeline.
But the question of where to buy really requires some thought, because the area that you decide on will determine how much capital growth you will enjoy in the future.
Unfortunately, no- one has a crystal ball and there is no set formula to predict capital growth, however there are some indicators that we feel we should pay attention to so that you have the best possible chance for a great property investment. Here are some:
- Infrastructure spending
- Economic activity
- Population and wages growth
- Vacancy rates
- Rental yields
If you are considering a property investment or own a property you’re not sure about, please feel free to call us on 02 8203 4160 or via the handy online contact form below.
*Note that Infocus does not give advice on specific properties. Advice in this area may be provided by Jim Leone Property Solutions where agreed.