How to pick where to invest
As we know that the Real Estate Sector is probably one packed with uncertainty and volatility, but at the same time it provides long-term promise for new opportunities. So, to help you out in order to move forward in your investment journey, here are some of the factors to look for while choosing the right property for your portfolio:
1. Look for growth areas
Capital growth is one of the most significant factor in property investment, so you should always look for areas that are expanding and developing in terms of population, the economy, and local infrastructure. These are likely to add boon to your investment.
Presently, Brisbane is in a situation where it has an over-supply of dwellings. In the 3rd Quarter of 2016, Brisbane had 68,000 dwellings under construction. However, the population increased modestly by 42,000. Overall, Brisbane’s population grew by only 1.4% from 2015 to 2016.
Slow population growth combined with a surplus in dwellings has dampened increases in property prices the past 2.5 years. It is expected that interstate migration from South to North will bring in an estimated 20,000 to 25,000 people to Brisbane annually. Assuming 2.5 persons per household, the additional population inflow could increase housing demand by 8,000 to 10,000 per annum.
b. Job Opportunities
Job opportunities for full- time and part- time work have been consistently rising in Brisbane. Although Sydney and Melbourne continue to account for the significant majority of employment growth in Australia, Brisbane is not far behind.
c. Infrastructure Growth
Investment in infrastructure projects are also powerful drivers of economic growth which of course has exerts upward pressure on real estate property prices. Many investment projects in Brisbane have been fast- tracked in Infrastructure Australia’s Priority List. Included in the list are the following projects:
- Cross River Rail
- Bruce Highway Upgrade – Caloundra Road to Sunshine Motorway
- Gateway Motorway Upgrade North
“It is the Right time to Buy Property in Brisbane as the prices are considerably affordable.”
2. Invest where you know
This doesn’t mean you should invest in your own backyard. Instead it means you should have the complete idea about your potential investment location. Try to do some research and prepare reports in terms of growth and development of the area in past few years. This will help you to know more about your estimated returns and profit.
3. Analyse the Future of the Investment Site
Try to find out what plans are in the works for the particular area so you can have an idea about how the future of the investment site looks like. Check out the Government and council websites as they often have information on infrastructure project proposals of the area. It’s also prudent to keep an eye on any residential developments that could be going up like opening of schools, colleges, hospitals and shopping hubs.
4. Choose low-maintenance properties
Look for a property that does not require high maintenance and is ready to rent out immediately. For instance, houses with pools and large gardens necessitate a lot of care and time, whereas a similar home on a smaller block with a flat, grassed backyard is far easier and economical to maintain.
5. Know what tenants want
Always go with those properties that appeal to the people who are actively renting and living in those areas. For example, a small unit may be more affordable than a house, but if the local market is largely comprised of families, your investment property won’t appeal. So again, a clear analysis is necessary when it comes to investment in Real estate sector.
In nutshell, it’s wise to get advice from experienced investors and other experts in the industry, and to be careful not to trust your investment decisions to those who have a vested interest in selling you something.