In Australia finding the right investment property is where most people begin when considering the optimum method to increase their personal wealth and financial security. The percentage of Australian people investing in property has increased profoundly in the last ten years. Property selection, capital growth, and the type of investment property in Australian Capital Cities.
Like all investments it pays to do your homework before you take the plunge into property. But even with rising interest rates, a sound strategy can pay off. The shortage of rental properties, combined with rising prices in most markets, means that if you choose the right property and make sure you keep a close eye on your investment, you could reap the rewards.
Here are some tips to help you in real estate investment australia to get the most of your investment.
To research the areas you are interested in, read property-related articles, use reputable property research companies and the Real Estate Institute of Australia, search the Internet, plus talk to people in the know. Find out each area’s average rental yields, what services infrastructure is in place and planned, and the property price growth that has been experienced and is expected. Invest the time to fully understand the market – it could make a big difference to future investment returns.
Seek advice about the type of investment property that will maximise your investment. For example, if your repayments are at an interest rate of 8% then you would need a property to secure you, as an average over the entire loan term, an annual return on investment (ROI) that is higher than the costs i.e. if net rent is 4% and the interest rate is 8% then it only needs to grow at more than 4% to be a sound investment. Buyers’ agents know the market better than most and are a valuable resource to use for advice or for negotiating with property sellers and/or their agents.
The Australian economy has been strong leading into 2011 and the disasters that we have experienced will put a strong demand on labour, creating greater pressure on wages, which will most likely rise before food production is back into full swing.
Research is the most important factor, however it can be costly and time consumimg. Unless you have access to the Real Estate Investstar which we have found to be very effective.