How to buy house and land packages in Australia
If you’re planning to buy a house and land package, it can be tricky if you’re not familiar with the ins and outs of...
Investors looking for properties that will hold and grow in value for the next 20 years would do well to consider medium-density homes in areas where infrastructure and green space were plentiful, according to Sydney-based property managers.
Addressing the issue of whether the housing market was picking up again following the re-election of the Coalition and recent interest rate cuts, Certainty Property director Simon Peisley said market demand was still a long way from the highs of previous years.
“There has been a lot more positivity, and analysis suggests consumer confidence has bottomed, but I wouldn’t say first home buyers are racing out into the market at the moment,” Mr Peisley told Smart Property Investment.
Certainty Property managing director Cameron Black said current market conditions meant both investors and tenants could be more discerning and medium-density homes in particular were seeing the bulk of demand.
“People are now understanding that there’s a real premium on land, and buying an apartment in a brand-new complex with high strata fees is perhaps not as desirable as a house on a nice street that can house a family or some empty nesters,” Mr Black said.
The proximity of infrastructure as well as open space and amenities were essential factors for investors looking for a property that would receive strong rental demand as well as holding its value in uncertain times, Mr Peisley said.
“Look for where there is potential infrastructure coming in as well as green space – so are there parks or swimming pools within walking distance, and places where you can go on the weekend,” he said.
At the same time, Mr Peisley encouraged investors to do their research thoroughly when planning a purchase rather than worrying about missing the bottom of the market.
“No one’s putting a gun to your head to say ‘buy’. And a few days’ research can potentially save you 10 years’ worth of lost income,” he said.
“That said, if an opportunity stands on its own and you’ve done the numbers on it, you’re going to do OK.”