Near or far: Where is best to invest in property?

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Location, location, location

When considering investing in property, most people will get straight on the internet and search for houses within a few miles of their own home. This is a common approach for first time investors who want to be able to drive past their property every now and then, check how things and going, and be on hand if there are any problems.

 

However, if you’re buying a property to rent out to tenants and have no intention of living there, there is no need to be restrained by your current postcode. There are many reasons why you could benefit from looking further afield.

 

Have you done the groundwork?

Before any would-be investor starts looking at properties, there is some essential housekeeping to be done. Have you decided what kind of investor you want to be? Have you been to the bank to find out how much you could borrow – then spoken to an expert about how much you should borrow? Do you know your investment goals and have a wealth-building plan? If so, you’re ready to begin your property search.

 

If you’re not quite there yet, schedule a meeting with one of the Reventon team to go through these essentials before you start your search.

 

Benefit from growing markets

If you currently live in an area that has already seen a high level of price growth – perhaps you bought your home when it was an up and coming area, and since then it has got new transport links, cafes, restaurants, and schools – then the chances are prices in your suburb are not going to dramatically rise in the short and medium term. You will have already benefited from these new amenities with your current property, and it means that buying an investment property in this area will come at a high cost.

 

If you want to maximise your investment profits, you should look at locations that have not yet experienced a property ‘boom’, but are expecting infrastructure investment and an increase in population. We call these ‘high growth areas’. Often, you can buy property for a fraction of the price of more established areas, and get higher returns more quickly.

 

Our team analyses the property market across Australia to search for signals of high growth areas. This can be anything from new schools being built, planned extensions to train lines, businesses moving their headquarters, previous property trends, and hundreds of other factors that affect a property market.

 

Expand your search

If you are happy to invest in other areas, why stick to your current city? The major markets in Australia vary greatly, and even within those cities there are micro-markets that behave differently from suburb to suburb.

 

So if you’re looking for maximum growth in your property investment, it could pay to look much further afield than you originally anticipated. For example, certain suburbs in Brisbane are enjoying an extremely healthy annual house price growth of 23%, while others across the city dwindle at 1.9%. Similarly in Melbourne, we’re seeing some suburbs in outer Melbourne with an annual house price growth of 19%, while more expensive inner city homes are falling in value.

 

Due to these variables, it pays to get professional help to analyse your potential property market. Looking at price trends, growth factors and rental potential is extremely important before you start looking at the kind of property you’d like to invest in. To get started, download a free suburb report so you can check out the stats for your area of interest.

 

Hire a property manager

You may be thinking, ‘this is all well and good, but what if something goes wrong with the property and I’m on the other side of the country?’

 

The majority of landlords take up the services of professional property managers to organise their investment. A good property manager can take care of the whole process. This includes photographing and advertising your property to tenants, collecting bond and drawing up contracts, managing rent collection and hosting inspections, organising maintenance and repairs, and even organising insurance. This means that you won’t have to lift a finger except to answer the phone every now and then for updates.

 

Reventon offers a full property management service meaning you can benefit from being a landlord, without any of the stress. Get in touch with one of the team and they’d be happy to talk you through the details.

 

Alternatively, book a free consultation with one of our experts to create a comprehensive property investment plan, personalised to your financial goals.


 

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