The residential property investment market in Australia is now worth over $5.5 trillion. However, not all investment properties are created equal, and the property market fluctuates all the time. If you're looking to invest in residential property in Australia, how do you secure the ROI (Return on Investment) you're hoping for? Below, we outline what you should look for in a high-earning investment property, and why it's so important to stay ahead of the market.
WHY RESEARCH IS KEY TO PROPERTY INVESTMENT SUCCESS
Put simply, choosing a residential property investment, or any high-earning investment property for that matter, comes down to a few crucial factors:
- Choosing the right property for your investment needs
- Selecting a property that's in the right location
- Picking a property at the right time
- Favourable market trends
How do you find a property that ticks all of these boxes? It all depends on doing proper research, which is why many smart investors rely on property investment specialists in Australia to do the hard work for them. This also why we offer property recommendations based on our research methodology, Calla Property Insights, which identifies the best residential properties for your investment needs. To be on the right track in your search for the right investment property, however, the first thing you must do is familiarise yourself with the property market. So, how do you get started?
UNDERSTAND MARKET CHALLENGES
There are a whole host of factors, such as regulatory changes, infrastructure, and employment opportunities, affecting the growth, stagnation, or decline of the Australian property market. For example, house prices in Sydney fell in 2018 by 7% largely because of changes in banking regulations that made it harder for individuals to secure proper financing to fund their investments. However, population growth and industry investment look sure to guarantee that Australia's property market as a whole will keep on growing. Being updated and understanding what's happening in the investment market will help you prepare and select a high-earning investment property.
CHOOSE THE RIGHT LOCATION
Location is a major consideration when you're looking for an investment property. Be aware of market forecasts for a given area as part of your strategy. For example, house prices in Melbourne are expected to rise by around 6% between 2019 and 2021, and house prices in South Australian suburbs are likely to rise by around 3%. You should also be familiar with the factors that make a location particularly attractive. These include:
- Having established and reliable transportation hubs
- Easy access to public amenities and basic services
- Business and employment opportunities
- Solid existing infrastructure
Not only do these help guarantee that the area will have consistent demand (and your property have good ROI), these factors are also possible indicators that it has good property market growth potential.
MARKET DEMAND
You need to know what residential tenants or buyers look for if you want to pick a great investment property. Another step you can take is analysing the kinds of properties they are purchasing or renting within a given area. This should tell you which properties are currently on demand in that area and which ones aren’t doing so well. For example, if there's high demand for properties close to amenities, or demand for a specific type of property, such as three-bedroom apartments, investing in these types of property might improve your chances of earning a high ROI. Attending property investment events, workshops, and seminars which feature industry experts is another great way to learn more about current and predicted market trends and gain useful insights.
BE ON THE LOOKOUT FOR FUTURE DEVELOPMENTS
Research has shown that properties close to public services and amenities such as train stations, universities, and public school zones get more demand. However, don't just look at existing infrastructure, either. It’s always smart to do a bit of research and know if there are significant infrastructure developments planned or currently underway in a given area. If the answer is yes, this could mean that the local government is expecting more people to live in that area in the near future, or they’re ramping up efforts to encourage more people to reside there. Either way, having plenty of infrastructure developments planned in the coming years is a good sign since it’s likely to result in more property demand, making things more profitable for you.
LET CALLA PROPERTY HELP
Having properties that deliver impressive ROI is the goal of property investors, and we at Calla Property can help. We are a team of property investment specialists who can help you build a more secure financial future by investing in property. Through our award-winning research methodology, Calla Property Insights, and match criteria, we’ll select the property in our portfolio that best fits your situation and strategy and ensure you’re presented with the right one for your goals. We do this with years of experience, expertise, and dedication to making property investment work wonders for you.
Please note that this is a free service we’re offering. If you have any questions or want to know more, don’t hesitate to contact us.
Disclaimer: No part of the information or calculations here are intended as advice. This is for general information purposes only.