There a four indispensable tactics to deploy when looking to make successful property investments in 2024. Australia is undergoing an immense period of growth while experiencing a severe housing crisis, but that should not be a deterrent from beginning or growing a property portfolio. To reap the full benefits of an investment property, now is the time to act before prices continue to rise. To optimise the performance of your property portfolio, there are several factors to consider. 1. It’s all about the land Land should be your very first consideration when investing in property. Land values appreciate, while the buildings on the land depreciate over time. Search for a large block of land with proximity to the CBD. As land sizes in Australia continue to shrink and the urban footprint expands, this is the best investment to be made in Australia. 2. Population principles To maximise returns, find an area […]

Rental income is a fundamental part of a successful property investment strategy but there are three crucial factors th at every investor should be aware of when it comes to maximising rent potential.   When it comes time to buying an investment property there is so much to consider, from capital growth potential, yields, to comparable sales. But novice investors might overlook the importance of the state of the rental market. When it comes to investing in a property market you need to take a step back and consider the perspective of a tenant. It is true what the news reports keep telling us, that the rental markets across Australia are at crisis levels and if you are looking to secure a tenancy, it is becoming increasingly difficult and expensive. If you are a landlord, this is an advantageous time to increase rent and you are likely to have negligible vacancy times […]

The world is full of advice on how best to invest in property but many supposed nuggets of wisdom are merely myths that need debunking. Investing in property offers investors a chance to build wealth; nevertheless, it’s crucial to be cautious because misleading and deceptive information is prevalent, potentially leading investors astray. Common myths and potentially dangerous advice on property investment abound, and we point out five of the most prevalent misconceptions Myth 1: Only wealthy people can invest in property  Having cash is helpful when purchasing an investment property but it’s not the be-all and end-all. Contrary to popular belief, most Australian property investors are ‘mum and dad’ investors: non-professional, small-scale investors. Most investors own just one investment property. Purchasing an investment property isn’t exclusive to having accessible cash flow; investors can use the equity within their home and refinance their mortgage. Another strategy is rentvesting, which is a […]

Property investors have much to consider when assessing the property market but four key factors stand out heading into 2024. Migrants accounted for 78 per cent of Australia’s population growth in 2022, highlighting the important role international migration plays in the property market. (Image source: Shutterstock.com) Successful property investing doesn’t just involve recognising a well-priced property or a prime location. As investors, we also need to be mindful of broader factors that can play a role in the performance of our residential markets. Below, I discuss four key macro-factors that are crucial in assessing a property market’s full potential. Economic performance A country’s overall economic performance has a crucial flow-on effect for residential property values. The health of our economy determines job opportunities, wage growth and employment levels. This in turn shapes consumer sentiment and disposable incomes – the funds people have to buy, rent or invest in property. The […]

Winter is traditionally a quiet period for the property market, but stronger sales volumes and unseasonably high buyer demand in some cities and regions suggest that sellers are in prime position in the coming months. Sale volumes picking up in some regions Property transactions in Sydney and Canberra were up 13.5% and 8.5% in June, compared to the same time last year. Perth and Hobart also recorded year-on-year growth in volumes. So far, in 2023, national monthly sales volumes have been lower than in 2022. However, in the past few weeks, sales have been picking up. If this trend continues, sales in July will be higher than last year.   The market was very strong in 2021 and 2022, so sales in 2023 are lower in comparison. However, compared to 2019 and 2020, sales are up. This time last year, sales in all regions were down except Canberra. This suggests […]

Investment properties have been the nation’s popular choice for building wealth, but an expert advised prospective buyers to carefully consider these five factors before venturing into the real estate market. Andrew Zbik, senior financial adviser for the financial advisory firm CreationWealth, highlighted the popularity of investment properties among Australians. He cited data from the Australian Taxation Office (ATO) showing just over 2 million people in the country own an investment property. Mr Zbik says the popularity comes from the ability for property to be highly leveraged, unlike any other asset class. To illustrate this point, he provided an example of a property with an 80 per cent loan-to-value ratio (LVR). In this scenario, the property is priced at $750,000, and the buyer makes a 20 per cent cash deposit of $150,000 while taking a loan of $600,000, resulting in an LVR of 80 per cent. In contrast, when looking at […]