Australia’s property market has had its ups and downs over the past decade, but overall it has weathered global economic crisis without any major upheavals. Australian properties remain in high demand for investors around the world, both in areas of industry and resort communities. If you’re thinking about purchasing a property that is likely to increase in value over time, it’s worth keeping the following features in mind.
Capital Growth Potential
One of the primary factors that you should be holding in mind for any investment property is its potential for long-term capital growth. Purchasing any property may be an emotional decision, but you’ll want to look at properties in those areas of Australia showing growth or the potential for growth in the future. Ideally, your property should have the potential to double in value every decade.
With capital growth, rental potential, and liveability in mind, location is very important. Urban properties are always in high demand, particularly in cities like Sydney, Melbourne, or Canberra which draw a mix of business visitors and international residents. Within these major cities, look at individual suburbs which are close to public transport, cafes, shops, and other amenities. If you wish to look away from the cities for your investment property, think about resort areas along the Sunshine Coast or in Victoria. These are always in high demand due to tourism, and you may be able to rent them out on a short-term basis at high yields.
Desirable Architectural Style
Once you’ve narrowed down the areas you wish to look in, the next step is to start comparing individual homes. For example, if you’ve learned that property in South Australia is showing signs of future growth, it’s time to peruse real estate SA with Homesales.com.au or other listings sites to compare what you can get for your money. Architecture is an important factor in whether or not a house will grow in value. Suburbs can often contain many different styles, some of which can look quite dated. Classic architecture is always in high demand, as it never early goes out of style.
Appeal to Renters
Even if you plan to reside in your new investment property for the foreseeable future, you should always think about how it could appeal to renters if your situation changes at any point. Look at the rental prices of comparable properties in the neighbourhood and think about whether these numbers would sufficiently cover your mortgage and other outgoings. In addition, think about how easy it will be to find renters in the first place. This comes back to location and amenities.
Room for Improvement
Although there’s certainly an appeal to a property in peak shape, homes that could use a little bit of renovation tend to be better investment candidates. You should be able to add value to the home to see a bigger return on your investment in the future. The property should be in a good enough shape to rent out immediately, but not in such perfect condition that there is no room for improvement down the road.
By keeping these factors in mind, you can improve your chances of getting a high return on your investment property. It’s best to research the market carefully in the area of Australia you’re most interested in before leaping into any purchase.