Is Property Investment Worth it?
Australians have long had a love affair with property, and it doesn’t just stem from the need to have a roof over their head. Many Australians see investment in property as a way to set them up in retirement.
However, in the last couple of months, there have been a raft of regulatory and government changes that have directly impacted property investors.
Along with rising property prices, the market has become increasingly complex. If you’re thinking of investing in property you may be wondering if it’s still a good idea.
The good news is yes, now is still a great time to be an investor.
Despite many of Australia’s lenders tightening their policies and pricing on their investment products, there are still other lenders hungry for business from investors.
If you have your finances sorted out and have stable employment there is no reason why you can’t make your property investment goals a reality. You’ll need to have saved a sufficient deposit or have a good chunk of equity in your current home.
You may receive conflicting advice on whether to buy a brand new or an established property. There are pros and cons to each. It’s definitely worth speaking with a property development expert, as what is best for someone else may not be best for you.
One of the benefits of property investing is that it is not difficult to get started. Of course, if you wish to maximise your success, you need to do your due diligence so you make the most of your money. Speaking with your Accountant and/or Financial Planner will help you formulate an investment strategy that is suited to your goals.
What to look for?
Research the market you’re buying in as you will want to buy in an area that will achieve long-term gains and returns.
There is a wealth of information on the internet that will give you market statistics, such as median sale prices, average rents, and vacancy rates. It may also be worth speaking with a Buyers Agent or specialist Property Investment organisation.
As an investor, you need to think about a property that will attract tenants, so it should ideally be positioned close to amenities, shops, public transport, and places of employment. Generally, the closer the suburb is to the city, the stronger the demand will be from potential tenants.
It is worth considering future infrastructure upgrades, such as new roads and rail links. These are key drivers for boosting demand in a local market – leading to greater rental yields!
The most important part of your search for an investment property is your budget. You need to know how much you can borrow and what the monthly repayments will be as this will give you a clear idea of what you can afford to buy.
Make an appointment to see the team at WFS who can source the best mortgage product for your financial situation and needs.
If you haven’t identified a specific property, the team at WFS can also help you obtain a pre-approval from a lender, so that you can purchase safe in the knowledge that you are not overstretching yourself.