Top 10 suburbs for unit price growth in Perth
In July 2021, a CoreLogic study showed a record high gap between median house and unit prices in the Australian property...
The New Year is heralding signs of opportunity for investors across the nation’s property markets but it’s not just when you buy, but what you buy, that counts.
According to a growing number of property commentators, 2011 is showing promising signs for the nation’s property markets.
The nation’s economy is strong and well positioned for the year ahead and we have close to full employment- employment fuels wages growth and wages growth fuels the property market in that people are more able, and willing, to pay for property.
Add to that an ongoing housing shortage and rising rents, and the fundamentals for investment are looking pretty good.
“I would advise anybody in a stable financial position to take the all-important first step of purchasing their first investment property, or getting some professional advice about how you can add to your current portfolio,” says Chris Gray, seasoned property investor and author of Build Your Empire, of the year ahead.
According to Mr Gray, investors who choose their location carefully with reap the best returns.
“Experienced investors and those just getting started will do well by choosing well located, inner suburban properties,” he says.
Indeed, successful property investment hinges on carefully selected locations. Investors should consider their location carefully and aim to buy property that is well positioned and close to amenities.
Mr Gray recommends median priced properties within five to 15 kilometres of the CBD which are close to leisure facilities, workplaces, beaches and transport. In particular, Mr Gray says properties priced between $550,000 and $800,000 are affordable for the majority of full time workers to rent.
“The fact remains these are the areas people will always wish to live in and you are unlikely to have any problems leasing your property,” Mr Gray explains.
“If you buy and hold on to this type of stock, in 2011 you can expect to achieve good rental returns of around four to five per cent and growth at six to eight per cent per annum.”
For a comprehensive guide on inner city investing, as well as an insight into the most affordable capital city locations, be sure to pick up a copy of our February issue, hitting newsstands mid-January. Inside, we’ll reveal which inner city suburbs across the nation’s capital cities offer investment opportunities for just $400,000 or less!