Recent figures have revealed there are 11 million residential dwellings in Australia, with 56.7% of Australian household wealth held in housing.
Interestingly, earlier figures (2022-21 financial year) found the jump from single property investors to dual property investors to be quite significant, with the former being 71.48% and 18.86% the latter. Not surprisingly the more property owned the lower the percentage, with just 0.89% of investors owning six or more properties.
It is important to consider quality over quantity if property investment growth is on the horizon for you.
Just because a property is available does not always mean it is a good investment opportunity.
You’ll be aware that location is important when it comes to purchasing property.
Outside of location, knowing when to buy is important. The timing needs to be suitable for you, but also looking to the future can also provide insight into what areas and what type of housing may be desirable.
Consider where people want to live, what makes a suburb desirable? What is it that attracts, particularly, owner-occupiers to a region? This will give a good indication for demand of not only tenants, but for potential resale down your financial timeline.
Look at what’s coming up – what infrastructure is planned and how this will benefit or impact negatively on an area. As our population grows, our suburbs are growing, and key areas of development provide insight into where populations are set to grow most rapidly.
While suburbs grow up and out, inner and middle-ring suburbs in capital cities continue to hold strong value.
The jump from one to two or more investments is not for everyone and it is important to consider long-term goals when it comes to investing. Markets change and demands change, therefore it’s important to ensure you have a thorough understanding of how the property you’re purchasing will grow your wealth and benefit your goals, whether short or long term.
In looking for your next property, tick off affordability, a diverse and strong infrastructure pipeline, a near-zero vacancy rate, rising rents to combat interest rates and a strong local job market. If you can, your outlook should be positive. Buy with a stable financial position to support you.
Having the right team in your corner to consider risks and benefits with purchasing certain property is invaluable. Surround yourself with trusted experts and ensure you consider your individual circumstances.