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Property Investment: Then and Now

Property Investment: Then and Now

Are you considering investing in property? Whether you speak to an experienced property investor, friend or family member, you will hear different advice. Put simply, the property market continues to change dramatically. This can make the process of buying an investment property difficult.

Despite believing they have a good understanding of current trends in real estate, investors will often find that their information is outdated. Read on to discover where the property market is heading so that you can stay ahead of the game.

Global Interest

Melbourne has been named the world’s most liveable city more times than most, but what does this mean for investors? Local and foreign buyers are attracted to the city’s booming, sustainable and multi-cultural landscape.

Melbourne attracts young professionals, families and independents with a range of world-class sporting facilities, renowned exhibitions, festivals and a thriving shopping and dining scene. When the average unit price for a 1 bedroom Sydney apartment sits at $720,000, more than $385,000 above Melbourne, it’s easy to see why.

Location, Location, Location

A keen eye for up and coming suburbs will take you a long way when it comes to investing in real estate. Unfortunately, the complex relationship between location and price continues to undergo significant changes. If you are considering investing in property, advice from your parents (who invested decades ago) is unlikely to be reliable.

Suburbs that were once affordable for the average first home buyer have quickly become too costly for investors today. With the variability in location and affordability, it is more important than ever to seek the advice of a trusted finance and property professional.

If you make a poor choice the first time, then your experience of buying an investment property will only become more difficult, with potential long-term consequences. Always engage with industry research first. Consider looking into developing suburbs for your next property or a ‘fixer-upper’ in a sought-after area.

Negative Gearing

Proposed changes to negative gearing have the potential to change property investment. Historically, investors have been able to claim losses experienced by their investment properties as tax deductions. Recent talks to cap the size of negative gearing deductions will have a huge impact on the property market.

These changes will benefit those investing in real estate for the first time, with a detrimental impact on renters and homeowners. Without negative gearing, property investors may suffer too big a net loss to keep their investments. This would result in an influx of rental properties being sold, which would drive property prices down, but raise renting rates considerably. Homeowners would experience a decrease in the value of their property too.

It is essential to consult with a property investment professional in order to make the best choice possible in light of these recent changes to property investment. Despite the ongoing changes, there are still opportunities for buying an investment property, your decision just needs to be informed and careful.

Property investment has changed a lot over the years. While it may have seemed simple 20 years ago, there are many obstacles and impending changes to consider in the present market.

Experienced Support

Property investment is fast becoming a more accessible and widespread form of wealth creation. There are now more skilled experts, investment advisors and property coaches than ever before. Each professional is there to help you strategise, understand the market and ultimately invest wisely.

This experienced support gives the investors of today a competitive advantage that the older generation did not have access to. There is a level of expectation that these advisors will not only have extensive experience, but a formal qualification and social proof to support their success.

In recent years, the property investment landscape has become far more attainable and respected. For the modern day investor, it could take the form of full-time work, providing a reliable income. This is a career move previously unheard of for the everyday citizen.

Diversity of Choice

Will you choose to invest in an apartment, townhouse or home? Off-the-plan or established? If you are considering investing in property, you will need to narrow down your options. The rise of apartment living coupled with a booming world population has brought with it a hugely increased supply.

This gives investors the freedom to choose their product market and maximise their finances. It is also the perfect entry point for those buying an investment property to secure a residence that they can rent out now and move into later.

Investing in real estate is a great first step to securing your retirement, a passive income or building your wealth. Today, it is a growing form of wealth creation that continues to achieve success after success.

Like all things, it should be highly considered before you take the plunge. To be sure that you receive the right information, contact Ausin Group today.

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