Buying a property to rent out is a significant investment that will put extra cash into your pocket every month.
You might have narrowed down the suburb you’d like to invest in, but where exactly in this suburb should you invest? Studies say that properties in close proximity to budget supermarkets are in demand in the rental sector. Here’s why….
Time
Most people
need to dedicate time out of their busy daily schedules for regular trips to
the supermarket. Whether they’re stocking their cupboards monthly or in need of a few odds and ends each week, they’ll
visit a supermarket without fail.
People
looking for rentals are more likely to choose a property near a budget
supermarket than one that takes significant time to reach, as many Australians
already battle lengthy commutes to and from work. Grocery shopping already
takes time – from navigating the store to waiting in line – so most people don’t
want to spend more than 20 minutes from start to finish. Therefore renting a
property close to a supermarket would be a good investment.
Students, single professionals, pensioners and even parents with young children appreciate the convenience of being able to get what they need from a store when they need it. This makes a rental property close to a store appealing to a variety of possible markets – unlike schools (which only appeal to parents) and nightlife (which only appeals to students and singles). A supermarket’s ability to stock everything from diapers to cigarettes to milk makes it a good common denominator.
No Car? No Problem
If given the option, most people would prefer not to drive unnecessarily.
If your investment property only offers single car parking or off-street parking, residents will prefer to visit places in walking distance rather than risk losing a coveted parking spot.
The walk could even be used as an opportunity to walk the dog or get some exercise, killing two birds with one stone.
Having a supermarket down the road with everything a tenant needs is a massive boost to the popularity and value of your property.
If you are looking to invest in rentals, the first places you should look at should be near budget supermarkets.
For more advice on investing in property in Australia, contact Wise Guru today.
The fact that property is an unpredictable
market to invest in is nothing new. How then do property investors take
calculated risks that yield success? Is it all just a guessing game? While
there are formulae to calculate a possible outcome at any given moment,
property investment projections are far more complicated than that. There are
so many elements to factor in when weighing the implications of an investment
that there usually isn’t a single, universally correct answer. We’ve compiled a
few distinct behaviours exhibited by successful property investors to guide you
in the right direction.
1. Honesty Is The Best Policy With Tenants
As a property investor, you’ll probably need
to attract tenants and maintain a healthy business relationship with them. How
do you do this? Property investment isn’t a highly regulated industry, but you
could opt to always be honest instead of taking advantage of this. It will help you develop a positive reputation,
marketing you as a trustworthy landlord to future tenants.
2. Always Find The Best Possible Loan Deal
When sourcing a property loan, it’s imperative
that you make comparisons first. Don’t just jump in on the first deal you’re
offered. There’s always someone willing to offer
a better deal. Loan amount and interest aren’t the only important factors – check
for benefits and added extras as well.
3. Pay Attention To Who’s In The Area
Before you decide on an area to invest in, do
a little research on the businesses that the area
attracts. Large fast food and supermarket franchises only set up shop where they
believe they’ll have a steady stream of
local customers. What does this mean for you? A revolving door of potential
tenants, that’s what.
4. Plan Ahead – Use Your Head And Not Your
Heart
The most important habit of successful
property investors is planning in advance
and in detail. With an investment as huge
as property, you can’t afford to act on a hunch. You need to punch in the
numbers, allocate funds and make provisions should the market move in an unanticipated
direction. This helps mitigate your risk
effectively, protecting your pocket in the long run.
If you’re keen on learning how to apply these
habits or anything else related to making a property investment, contact Aussie
Property Guru to chat to an expert today.
To many it might feel like the Sydney property market is difficult to penetrate in terms of property investments. Seeing as most suburbs within 50km of the city’s central business district have a median house price higher than $500 000, this sentiment is understandable. However, if you still want to reap the benefits of investing in Australia’s profitable property investment market, there are some great options, and today we’ll be looking at one of the best: Brisbane.
Why Brisbane
Recent projections show that the Brisbane property market is well on its way to showing some great growth opportunities for property investors. Paired with the fact that the amount of council areas in Greater Brisbane like Logan, Ipswitch and Moreton Bay have a large amount of suburbs with very affordable median house prices, means that it can give a great return for investors.
Invest closer to the CBD
If you feel that you want to invest in property that’s closer to a large CBD, you should consider Brisbane. One of the city suburbs, Bracken Ridge, has a median house price of $495 000, and is less than 20 kilometres from the city’s central business district. Better still, the suburb was also a beneficiary of the state-funded transport upgrade, which has helped to reduce commuting times.
Interstate migration
Due to the price discrepancies between cities like Sydney and Brisbane, we’ve been seeing a large amount of interstate migration, which makes sense. One of the strongest driving factors for people is affordability. When you combine Brisbane’s developed and affordable real estate offerings, it makes sense that more people are moving to this bustling city. This also means that if you are looking for a property to invest in that has tremendous potential, you should definitely keep your eyes on Brisbane.
We can help
If you are interested in investing in Brisbane’s growing property market, but not sure how to get started, we are just a click away. Contact us for more information about the investment opportunities available to you, and whether Brisbane will be the right fit for your property investment needs. Our team of investment specialists is ready and standing by to help you find the property that’s perfect for your investment objectives.
Just a brief note for the end of the week to share a couple of stories which resonate with me in relation to information we have been compiling over the course of 2013. “Brisbane will be the next Australian capital city to take off, according to a panel of property experts.” These two articles should be of interest to everyone who is looking to invest in the Australian property market as it relates to two of the most dynamic state capitals in the nation.
Kind Regards
Dr Andrew Unterweger
Next capital city to boom
by Vivienne Kelly | 15 November 2013
Brisbane will be the next Australian capital city to take off, according to a panel of property
experts.
Speaking at a recent Smart Property Investment roundtable, Propertyology’s Simon Pressley, Destiny Financial Solutions’ Margaret Lomas, property lecturer and author Peter Koulizos, Empower Wealth’s Ben Kingsley and ProSolution Private Client’s Stuart Wemyss all agreed Brisbane would be the best performer over the next two to four years.
Mr Pressley said it would be “Brisbane by a mile”. However, Mr Wemyss contended Sydney
would remain a top performer.
Ms Lomas, however, said even if Sydney continued its solid performance, investors would be
smart to look at Brisbane.
“If you’re considering today, you’ll get better growth in Brisbane,” she said. “A lot of this has
already happened in six months in Sydney. They’ll probably both perform equally, but the base
is lower in Brisbane.”
Mr Pressley said Sydney will continue to perform better than the Sydney average, but said he
wouldn’t invest in the New South Wales capital “because of affordability”. read more …
Sydney buyers losing power in marketplace
By Vivienne Kelly | Wednesday, 13 November 2013
Homebuyers and investors in Sydney are becoming disempowered and have less room to negotiate as the market heats up, according to a leading property analyst.
Speaking at a Multifocus Properties and Finance event last night in Sydney, RP Data’s national research director, Tim Lawless, said the Sydney market currently favours sellers rather than buyers.
According to Mr Lawless, it is taking an average of 44 days to sell a property across Australia’s capital cities, but the most recent data indicates this number is as low as 27 days in Sydney.
“We’ve seen buyers become disempowered,” he said. “There is less negotiation in the marketplace.”
Mr Lawless said rental yields in Sydney were also being eroded due to the high capital gains the city is experiencing, combined with slow-moving rents. He said this trend is difficult to overcome in the current market because it’s less likely investors will be able to nab a bargain.
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Dr Unterweger is a highly qualified financial and property adviser, experienced venture capitalist and successful investor