Twenty years ago, the accepted wisdom was that all real estate increased in value eventually. However, this has been proven to be false; to make a profit in property in 2019, strategic selection and a clean plan is crucial to your success.
For instance, in a city like Sydney, inner city period homes will almost always be a good investment.
“Every main city in Australia has a circle of heritage properties within a 15km radius, which historically have patterns of strong capital growth,” confirms John Kovacs, managing director of mortgagee and deceased estate portal nmddata.com.au.
But properties like this don’t always come cheap. In the harbour city, these types of homes will be attached to a seven-figure price tag – and the rental returns might only cover half of the mortgage repayments.
So how do you seek out quality yet affordable real estate opportunities, so you can get ahead in the property game?
As clichéd as it sounds, all it begins with location. You may not be able to afford the middle of the city, but there are sought after pockets throughout every suburb.
“We’ve all heard it in a commercial sense but location, location, location is critical. The property needs to be in a good location close to schools, shops, transport and recreational facilities,” Kovacs says.
“Quiet leafy suburbs, or homes with ocean views and near parks and gardens are the ideal settings.”
He also recommends investors look for growth corridors, which are areas were the government is spending money on infrastructure, roads, schools and public transport.
“The correlation between new infrastructure and property prices is a proven method and provides steady capital growth,” he says.
“Also, don’t be afraid to look outside your state for property investing. It’s a great way to diversify your investment portfolio and keep up with market trends and property cycles throughout the country.”
For the full story, read the complete feature story in the February 2019 edition of Your Investment Property. On sale at news agencies and Coles supermarkets January 10th to February 14th or download the magazine now.
