Expert Advice with Lindy Lear. 30/08/2018
Against a backdrop of economic uncertainty and general pessimism, many property investors have done surprisingly well in recent years, and continue to add well researched, well located properties to their portfolio that will help them achieve their long term goals.
In the April edition of ‘Your Investment Property’ magazine, I wrote about the Australian economy, and how many key stakeholders, including our current Reserve Bank Governor, Mr Philip Lowe, feel that the Australian economy has actually been doing OK. Reference was made to a number of important indicators that seemed to back up this assertion. Not only that, these experts are of the opinion that, if the economy is managed well, that Australia is very well placed to enter into another golden era of economic prosperity.
This generally upbeat appraisal seems to be at odds with many would-be investors, who are unsure of how to proceed when all we seem to hear about are stories of economic uncertainty, tightening credit, stagnant wage growth, and declining property markets. I think that the lesson here is not to allow your attitude to be soured by sensationalist tabloid journalism, often penned by those who have no direct experience in property investing. Instead, we should look for positive examples of investors who continue to make good gains, even when the outlook at times appears bleak.
As an illustration of how well some property investors have done over the past 4 years, I would like to focus on some specific areas.
Augustine Heights is a relatively new suburb which forms part of Greater Springfield in the western growth corridor of Brisbane. In 2014 I was recommending this area to investors as I felt it had great potential, and I could clearly identify the known drivers of capital growth. Back then, I was recommending 4 bedroom homes in the low $400,000’s. These same homes today have increased in value by $100,000, having grown in value by 28% in the past four years.
Peregian Springs is an area that I feel very comfortable with, and again shows all the signs of being a great place to invest. Not only have I recommended this area to many investors, I have also purchased there myself. My 2016 purchase of a 3 bedroom, 2 living area house on a corner block surrounded by bushland knocked me back $476,000, and I have just had it re-valued at $580,000. That equates to 11% per annum capital growth. Not bad.
Werribee is another area that I was also recommending to our investors back in 2016. Although it is not a particularly ‘sexy’ suburb, it again displayed all the characteristics of being a good place to invest for strong capital growth. A 4 bedroom house in the Harpley Estate that I recommended to one of my investors at $500,000 is now worth $680,000, giving an annual average growth of 18%. He is one happy investor!
Whilst these areas have done very well, it is unlikely that they will continue to outperform the average indefinitely. If you would like to find out more about identifying affordable areas now for strong growth in the next few years, please download a free copy of my latest book at the Rocket Property Group website, or alternatively, read my article in next month’s issue.
Lindy Lear is a successful property investor who had a late start into investing, yet she built a portfolio of eight properties in just three years. She is a qualified property advisor and general manager of Rocket Property Group, and she won the Reader’s Choice Award in 2009, 2012 & 2013 for Property Investment Advisor of the Year. Lindy is passionate about helping others realise their goals through investing in property, and can be contacted on Ph: 1300 850 038 or visit www.rocketpropertygroup.com.au
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.