Property Investment Melbourne
New apartments, home and house buyers’ information and property investment guide...
We’ve all heard the saying ‘as safe as houses’ and you can’t go wrong with buying ‘bricks and mortar’. Purchasing an investment property is a sound investment 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 buy an investment property 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
Ensure high demand for your property by buying an investment property where the location is tenant friendly and close to amenities such as cafes, 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. And that’s because many of the banks will lend up to 100% of the value of a residential property. 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 Melbourne property investment market
Melbourne 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 cafe culture, restaurants, sporting and cultural events and nightlife.
Melbourne continues to experience strong population growth with increased numbers of overseas and interstate new residents calling Melbourne home each year. It is projected Melbourne’s population will grow to 5 million by Melbourne with over 284,000 new dwellings to be built by 2030 to accommodate demand according to the Melbourne 2030 Strategy and the Melbourne @ 5 million.
The rental market remains strong with Melbourne’s low vacancy rates, resulting in stronger yields and opportunities for shrewd property investors.
Factors to consider when buying an investment property in Melbourne
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Position: Search for an investment property that is close to Melbourne’s multitude of cafes, restaurants, public transport and popular shopping strips.
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Price: Research the current price sold for similar properties in the area, the average annual yield, capital gains growth, rental expenses and maintenance costs.
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Potential capital gains: Find out what other properties in the area are experiencing in terms of capital gains growth to calculate potential returns. The potential for capital growth in Melbourne is improved by low vacancy rates, a strong population growth and demand for property.
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Possible rental returns: Access rental reports to work out the potential rent to charge and demand for similar properties in the area.
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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.
Find Investment Property take the guesswork out of finding hotspots in Melbourne. The regions in Melbourne are:
Following is a list of the Melbourne locations that will outperform in 2009:
Useful resources for buying an investment property in Melbourne
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Capital gains tax - Australian Tax Office - www.ato.gov.au
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Conveyancers - Australian Institute of Conveyancers (Victorian Division) - www.aicvic.com.au
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Rental reports – The Office of Housing - www.housing.vic.gov.au
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Planning reports – Department of Planning and Community Development - www.dvc.vic.gov.au
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Property managers – Real Estate Institute of Victoria - www.reiv.com.au
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Tenant disputes - Consumer Affairs Victoria - www.consumer.vic.gov.au
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Stamp duty - State Revenue Office - www.sro.vic.gov.au
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