Property Investment Adelaide
Now is the time to get into the Adelaide Property market, but with so many options what is the best way to go? Below are some tips on property investment in Adelaide
We’ve all heard the saying ‘as safe as houses’ and you can’t go wrong with buying ‘bricks and mortar’. Purchasing a property investment in Adelaide is a sound strategy that builds wealth creation without the high risk of buying shares or stocks that may plummet overnight.
Dabbling on the stock exchange may potentially give you high returns but puts you at risk in a volatile market. Buying an investment property is a long term investment strategy that will bring a stable return and peace of mind.
Here are five reasons why you should consider buying a property investment in Adelaide and get a piece of ‘the great Australian dream’ that will still allow you to sleep at night.
Capital growth
Capital growth is the increase in the value of your property over time and is one of the main reasons why people invest in real estate. Your best chance of achieving capital growth is buying the right property, in the right place, and most importantly at the right price to maximise your returns.
Rental income and yield
An important factor when deciding on buying a property investment in Adelaide is high rental demand. Most off the plan properties in Adelaide will be in tenant friendly locations and close to facilities and amenities such as cafes, restaurants, public transport and shops.
Taxation benefits
You may be able to claim a number of expenses related to the investment as deductions and depreciation. Any legitimate expense incurred in running your investment property should also be tax deductible. Depreciation schedules where possible are provided for each of our investment properties.
Affordability of property investments
You do not need to be very wealthy to get into property investment. With tighter lending policies, you may require 10% of the total purchase price but some banks will still lend up to 100% of the value of a residential property depending on your financial history. As long as you have a steady job, regular income and good credit rating, you can afford to buy an investment property.
Greater degree of control
While the performance of any investment is not guaranteed, buying an investment property may provide you greater control than other assets. There is a lower return in purchasing property but potential high returns are forsaken for less risk and a stable return from property with a long term investment strategy.
Understanding the Adelaide property market
South Australia, the arts, wine and festival capital of Australia always ranks highly as one of the world’s most liveable cities in the Economist Intelligence Unit's liveability poll. The city is an attractive location for prospective tenants with its love of music, arts and comedy festivals and love of wineries, cafes and restaurants.
Adelaide continues to experience steady population growth with increased numbers of overseas and interstate new residents calling Adelaide home each year. It is projected Adelaide’s population will increase by 18% from 213,823 people to 1,395,812 people by 2027 according to the Australia on the Move report.
The rental market remains strong with Adelaide’s low vacancy rates, resulting in stronger yields and opportunities for astute property investors buying an investment property in Adelaide.
Factors to consider when buying an investment property in Adelaide
- Position: Search for an investment property that is close to Adelaide’s multitude of popular shopping strips, cafes, restaurants and public transport
- Price: Research the current price sold for similar properties in the area, the average annual yield, capital gains growth, rental expenses and maintenance costs.
- Potential capital gains: Find out what other properties in the area are experiencing in terms of capital gains growth to calculate potential returns.
- Possible rental returns: Access rental reports to work out the potential rent to charge and demand for similar properties in the area.
- Proposed infrastructure and changes: Investigate any planned changes to the area which may affect the ability to rent out the property or may increase demand for the investment property.
Hotspots in Adelaide
Find Investment Property take the guesswork out of finding hotspots in Adelaide. The regions in Adelaide are:
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