With many Australian cities experiencing record breaking property pricing and others falling behind, finding an affordable investment with growth potential is a challenge. We all want to get into the property market without biting off more than we can handle, but at the same time we don’t want to invest in areas that seem affordable but offer no stability with tenants and where long term growth is uncertain. So how do we get into the investment property market affordably without taking a huge risk? Looking at the property market as a whole can be overwhelming, but breaking up the key qualities of a sustainable property investment could bring light to the matter.
Location and Growth Prospects
Location is a major factor in how much you are willing to pay, what value the property holds and what potential it has for growth in the future. Look for locations that have good prospects for capital growth and have a below the market median price. You don’t need to go straight for the major cities to find growth opportunities, with some smaller towns and cities offering all the ingredients for a rising future. Research the area’s population fluctuations, employment diversity and infrastructure developments to really understand the area.
Is money being invested into providing new services and facilities for residents where you want to invest? An infrastructure can be the heart of a city determining its growth or its decline. Ensuring an area is funding development for road work, public transportation, water supply and telecommunication can indicate positive progression for a market in the near future. Keep in mind a city offering easily accessible transport offers shorter travel time to work, which in return allows people to have more leisure and family time. This improves the effectivity and productivity of a city’s economy.
When new developments are announced in a city there is an increased interest in the property market. New infrastructure work offers new jobs which inflates demand for employees and the need for accommodation. Research the local area thoroughly and get an understanding of the main industries that are active and investigate the status of the current job market. Read the local newspapers and get a sense of the status of the local economy and learn as much as you can about the future planning and business investment within areas. This can be very useful when recognising trends about the health of a city’s economy and the predicted movement of an investor’s return on investment over time.
Return on Investment
Everyone is looking for a “quick win” but it is important to have a long term view of maximising your investment potential. Not all locations will offer large capital gains so it is important to really weigh up what you want from an investment and consider all factors. What you want to receive in return is a steady rental income and increase in property value over time. It is important to have a clear understanding of what your investment goal is and a planned exit strategy when you have established a strong return on your investment.
Investing in Quest Properties
Investors looking for an affordable secure investment that offers rental income guarantees may consider investing in a serviced apartment. Quest Apartments offer secure investments and have over 5,000 strata titled apartments owned by private investors. Quest Properties offers affordable property investing options with high rental returns (commonly around 6.5% plus) and attractive tax deductions. A Quest property is a secure, high yielding investment with extra benefits such as no property or letting fees.
Whether you’re looking to invest or exploring the various options, simply register your interest with Quest Properties to learn more about Serviced Apartments. https://www.questproperties.com.au/register-interest-quest-properties
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.