The predictions for 2017 property market in Australia are proving to be true. Just a month into it, the investment industry is already showing promising benefits for property investors. Many analysts are already calling it the year of property investors as more and more investors are entering market. The rebirth of the market will positively impact the economy by boosting consumer confidence, say many experts.
Another recent perk is the stronger commodity prices that will lift a consumer’s confidence in property resources in different parts of Australia. The current slowdown in construction home is also a great indicator for investors, as the deficiency of furnished houses will increase the number of buyers who are willing to pay higher than the bid amount.
It is due to these factors that many investment firms such as the Sound Property Group are offering advisory services, to ensure the best purchase or sale is made. But even in such favourable conditions, property investors need to play by some rules to increase their rental returns and capital growth. Let’s look into them in detail.
The 5 Rules Property Investors Need To Abide By In 2017
Aim for a national approach:
Instead of investing in properties in your local area, take a national approach. Conduct a thorough research for properties in areas that are currently down but on the verge of recovery, such as some parts of Queensland and Perth in Western Australia. Branching out will increase your chances for a smart investment than your competitors.
Invest in areas with a new proposed infrastructure:
Investing in areas that are soon to get a revamp such s getting a new rail link are the smartest ones to get your hand into. Government investment in the social infrastructure will up its value in upcoming time, promising investors a larger chunk of profit. Such properties are as honey is to bees when it comes to selling or renting.
Invest in more than one property at a time:
It may seem contradictory to earlier belief, but in modern times, it is best to buy multiple investment properties than just one or two. This allows investors the ability to make significant personal wealth, as there is always some fruitful deal going on. But to be able to do that, investors need to draft a long-term strategy of how everything is going to work out, and stick to it.
Don’t allow emotions to play a part:
When investing in a property, every investor likes to imagine themselves living in the house. But just because the idea of living in a property appeals to you doesn’t mean it will appeal to the rest of the world too. If you plan to rent out the property, ensure that your emotions don’t cloud your sound judgment. A majority of first-time investors make the mistake and later pay for the consequences when no buyer or renter is interested.
Invest in areas with significant owner-occupied homes:
The reason to invest in such properties allows investors to cater to a larger chunk of serious buyers who wish to settle down permanently. Such buyers are always willing to negotiate better, as they are investing in an already established neighbourhood. This isn’t the case with ongoing projects where buyers only have a neighbourhood model to look at.