Property has its ups and downs but historically it has been the star performer compared to other investments. It is one of the very few investments that you can sleep at night knowing you will earn an income. Property can be a low-risk investment with the lions share of property owners being made up of homeowners, around 70% in recent times.
When is the best time to invest?
The timing to start now or to expand your investment portfolio seems to make sense. Property prices are falling in most states and interest rates are still at a record low and look set to stay that way for the near future.The Real Estate Institute of Victoria (REIV) has estimated the vacancy rate of properties to be at 1.9 per cent in Melbourne currently. This spells good news for investors as high demand will continue to create higher rental income.
Is a new property better than established?
New properties provide lots of benefits include generally higher rental yields, building warranties resulting in lower maintenance costs, and of course you can maximise the depreciation benefits. All of this results in better cash flows which is fundamental to servicing your investments and building wealth creation in the long term.
What area’s should you invest in?
As populations increase in major cities, property will continue to be in demand, particularly in vibrant inner-city areas <50km from the CBD) with good transport, food and coffee culture and a high level of amenities. In Melbourne, regardless whether it is a new or old property, if it is positioned near transport, schools and other amenities like parks, shopping centres and recreation reserves it will most likely outperform those properties that don’t share these factors.
The choice is yours. You can read media reports and wait to see what happens with property but history and experience has proved that savvy property investors thrive in uncertain times, as this is where the greatest profit upsize can be made. If you want to speak to a good property investment specialist about helping you invest in the right property then reach out and contact us today.