Thinking about investing in property, but don’t know exactly what you should be considering? This guide will help you to determine the best options for your needs.
Are you buying because you want to own a second property closer to the city centre, or because you know that units in Australia are growing in popularity? If you want to increase your passive income, buying an apartment in the city centre could be a good option, so you can rent your home out and earn money from your weekly rent payments.
This two-part investment guide for buying real estate around Australia will help you on your journey to creating wealth!
Read on for part two:
Buying in the city becomes more accessible when you’re buying a unit.
If you know you’re buying a unit, your needs might change considerably compared to when you’re buying a house. For one thing, you could start looking at high-rise apartments in the heart of the city, or you could buy a brand-new apartment in a block that’s currently under development.
Buying in the city becomes more accessible when you’re buying a unit. If you’re buying an investment home that you want to rent out to businesspeople, the city is a sound option. You can even use it yourself when it isn’t tenanted.
A current strong unit market is Brisbane – in the 12 months leading up to August 2016, 9,214 new units were approved for construction, according to a report from Jones Lang LaSalle (JLL). That was an increase of 13.8 per cent over the approvals from the 12 months before. Apartments in Brisbane are in high demand, and you could take advantage of that with the right investment strategy.
Apartments in Brisbane are in high demand, and you could take advantage of that with the right investment strategy.
By contrast, the Canberran apartment market saw only 2,126 new unit approvals in the 2015-16 financial year which dropped by 7.7 per cent from the previous year, according to a separate JLL report. If you want to buy in a strong unit market, with plenty of choice and lots of people wanting to live in units in the city, buy somewhere with similar performance to that of the Brisbane apartment market.
Prefer the finer things in life? Buying a luxury apartment as an investment might be your preferred option. If that’s the case, the obvious choice is looking at real estate in Sydney – from Parramatta to the North Shore, there are plenty of beautiful apartments to choose from.
As an Australian buyer in 2017, you might have an advantage over foreign buyers too. Tighter regulations around stamp duty and lending rules have already reduced the flow of high-flying overseas investors snapping up Australia’s most sought-after properties, according to Mansion Global. In 2016, seven out of the ten most expensive property sales around the country were from local buyers.
Take care and do your research before you buy.
Obviously, being in the market for a luxury apartment means you’ll be paying a premium for your property. That being said, don’t feel you have to pay through the nose simply because you’re buying a beautiful home. Your investment is still intended to make you money over time, and if you pay too much for your property initially, you won’t be making money over time. In fact, you could lose money if you don’t buy and sell at the right times! That’s the exact opposite of what an investment should do, so take care and do your research before you buy.
Whatever you’re buying for, whether it’s capital gains, or to improve your lifestyle by buying a second property closer to the city centre, make sure you take your needs into consideration and explore all your options before settling for something that might not be absolutely perfect. Your investment in real estate will make you money over time if you buy smart!