When to Buy an Investment Property Down Under

One of the most popular ways of investing in Australia is investing in property and for a good reason. Property investment can provide you with a good nest egg as you will earn rent and receive a tax deduction on property owning expenses. It is important to remember that, when you make the decision to invest in property, you choose a property that has the potential to increase in value. This might sound scary but it’s actually an easy process when you take the time to do some research.

Is Now a Good Time to Buy an Investment Property Down Under?

The Smart Property Investment Insight Survey indicates that 32.3% of investors in Australia believe the country is in a property boom but experts believe the property bubble isn’t about to burst any time soon. The survey also indicates that over 70.5 per cent of respondents believe that now is a good time to purchase property.

How to Pick the Peak of the Market?

Investing in property involves a lot of patience combined with a good knowledge of the local property market.

Boom Phase

This is usually the shortest phase of the property cycle and is the best time to sell as during this time properties will increase in value at a rapid rate. This phase starts when investors notice the rental prices and property value of neighbouring properties are increasing. During this time properties sell above the asking price as buyers compete with each other and vendors push up prices.

Slump Phase

As the supply of properties on the market exceeds the demand the property market goes into a slump.

Stabilisation Phase

A short period where the market starts to stabilise.

Upturn Phase

Rental prices begin to rise and the price of property increases creating new investment opportunities.

This phase usually begins in the inner suburbs and in areas close to the beach first gradually moving out to the middle ring of suburbs and finally the outer suburbs.

By the end of this phase, property is affordable again. Eventually, the market enters a new boom phase.

Which Type of Property?

The type of property you choose to invest in depends on the area and how the market is performing.

The factors that make up a desirable location rarely change. Properties close to amenities are always in demand. Having the following amenities in close proximity will increase the desirability of a location and in most cases the value:

  • Access to public transport
  • Lifestyle activities (beach, restaurants etc)
  • Schools
  • Public facilities (medical centres, libraries post office etc)

It is important to consider is the demographics of the people looking to rent in the area. If the area has a high concentration of university students the number of bedrooms should be your number one concern whilst if people are looking for family home you want a property that is close to parks and schools on a quiet street.

The local job market is another indicator of a good investment. If the area is reliant on one particular industry, it may become undesirable if that industry collapsed.

Suburbs within 10 kilometres of a major city are always a good investment as they are highly sought after. To avoid the high prices that these suburbs attract look for nearby emerging suburbs with potential for growth.

The best way to get independent advice on property investment is to visit professional mortgage & finance advisors. You can also get independent information about property values, suburb reports, demographics and average rental prices from RP Data. The local council can also help with information about changes happening in a particular suburb.


Talk to Matt Ivers if you want to invest in property

Matt- Ivers

 Matt  is one of the country’s leading finance brokers, helping hundreds of clients develop their property investment strategies.  You can contact Matt here or email and Matt will call you.

What people say:“Matt Ivers has been taking care of my bank finance for almost 15 years and this long successful association leaves me satisfied that my best interests are being taken care of. When we discuss business, as a client I get the strong sense that Matt is working hard to understand my requirements and find options that best suit me. This leaves me with confidence because of his extensive experience and the team that he has gathered to work with him.” Anson D

Matthew Ivers at Vision did the finance for my first house back in the year 2000. It was a small company back then as Vision itself had only just started. It was obvious to me that Matthew (and his business partner David) were going to be successful in their field as my questions were always answered promptly and their knowledge of the various products they had on offer was excellent. Over the last 14 years they have done all of my finance (five properties in total) and every time the service has been as good as I could have hoped. Recently, Vision has moved into being involved in the finding and financing of investment properties and having used the service I have found it to be fantastic, taking the hours out of going through plans for new developments and just having Vision earmark the ones that look the best (and in potential growth areas) has been a great advantage for me. I would have no hesitation in recommending Matthew, David and the rest of the Vision team to any of my friends looking for a quality finance broker.” Steve M