Property Investment NSW - New South Wales
New apartments, home and house buyers’ information and property investment guide...
Buying an investment property is a proven way to create wealth at a lower risk than buying shares which may be at threat in a volatile market. 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.
However, as with any investment, there are no guarantees which is why it is important to do your research such as investigating the investment property location, capital gains growth and the potential rental income and yield. It is also essential to find a property in a location desirable to tenants and find out about any planned developments in the area which may add or decrease value to your investment property.
Here are five reasons why you should buy an investment property now and start building your investment portfolio.
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 to have a long term investment strategy.
Rental income and yield
Whether you buy a property in the inner city, the western suburbs of Sydney or regional New South Wales, the property should be in close proximity to public transport, main highways, hospitals, shops, cafes and restaurants and in a desirable area for potential tenants. The greater the demand for your property, the higher the rent you can charge.
Taxation benefits
A number of deductions can be claimed on your tax return, such as interest paid on the loan, repairs and maintenance, rates and taxes, insurance, agent's fees and buildings depreciation. Depreciation schedules where possible are provided for each of our investment properties.
Affordability of property investments
Buying an investment property to rent out can be a good way to accumulate funds so you can eventually buy your own place, in an area where you want to live. Alternatively, you may choose to rent in a more desirable and expensive location and buy an investment property in an area that you can afford.
Greater degree of control
Property investing gives you a greater degree of control than being at the mercy of a volatile share market that can plummet overnight. With proper planning and research, you can buy a piece of ‘The Australian Dream’ without it becoming a nightmare.
Understanding the New Sales Wales property investment market
NSW is Australia’s largest state with a population of more than 6.98 million people, making the state home to more than one-third of Australia's population. According to the Sydney Metropolitan Strategy, Sydney needs to cater for a projected extra 1.1 million people in the next 25 years due to a projected rise in immigration and fertility rates.
The New South Wales Government has committed to a $140 billion capital program over the next decade according to the State Infrastructure Strategy 2008-18 report to cater for the increase in population growth. The main public transport services include 13906 kilometers of railways, bus services, port and harbour facilities. Most cities are well connected by public transport or major highways.
Historically, the best performing properties in terms of capital growth have always been within 10km of Sydney and beach side suburbs are also attractive property investments. Sydney’s high entry prices have the city less attractive to first home buyers or investors but bargains can still be found in the outer suburbs of Sydney or looking further afield in regional New South Wales.
Factors to consider when buying an investment property in NSW
There are many factors to consider when buying
investment property in New South Wales, including:
- Location: No matter where your property is located, it should be close to amenities such as public transport, shopping centres, hospitals, major highways and cafes and restaurants.
- Affordability: The affordability of a property in NSW needs to be offset by location and capital gains growth.
- Capital gains: Capital gains growth is a huge driver in your decision on where you will buy an investment property but make sure you buy a property in your budget.
- Rental Returns: Rental returns are an important indicator of a property’s financial viability.
- Changes: New developments to the area may affect the value of your property or decrease desirability for tenants.
Find Investment Property takes the guesswork out of finding hotspots in New South Wales. The regional areas in NSW include:
Following is a list of the New South Wales locations that will outperform in 2009:
Useful resources for buying an investment property in NSW
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Capital gains tax - Australian Tax Office – www.ato.gov.au
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Conveyancers - Australian Institute of Conveyancers (NSW Division) - www.aicnsw.com.au
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Rental reports – NSW Housing - www.housing.nsw.gov.au
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Planning reports – Planning NSW - www.planning.nsw.gov.au
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Property managers – Real Estate Institute of NSW - www.reinsw.com.au
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Stamp Duty - Office of State Revenue - www.osr.nsw.gov.au
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Tenant disputes - Consumer, Trader & Tenancy Tribunal - www.fairtrading.nsw.gov.au/cttt.html
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