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Property Investment Victoria

Property Investment Victoria

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 guarantee 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 Melbourne or regional Victoria, the property should be in close proximity to public transport, main highways, hospitals, shops and cafes and restaurants 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 Victoria property investment market

Victoria is the smallest mainland state but it currently has the second highest population after New South Wales. Victoria’s population is estimated to grow to 6 million by 2025 according to the Beyond Five Million population report. The majority of Victoria’s population resides in the state capital, Melbourne.

Melbourne always ranks highly as one of the world’s most liveable cities in the Economist Intelligence Unit's liveability poll with its cafe culture, restaurants, sporting and cultural events and nightlife. Historically, the best performing properties in terms of capital growth have always been within 10km of Melbourne which is the business hub for the region.

Shrewd investors should look further afield to regional towns in Victoria which is home to the Grampians National Park, Victorian Alps and the Great Ocean Road. Investment properties such as inner city properties, beach front homes, ski real chalets and homes located close to national parks and natural attractions continue to offer the greatest return on investment.

Factors to consider when buying an investment property in Victoria

There are many factors to consider when buying investment property in Victoria, including:

  • Position: This determines how popular the property will be with tenants. Preferred properties are always located near public transport, shops, hospitals and schools
  • Price: This is a strong driver in where you will purchase your property but also take into consideration the location and potential for capital gains growth.
  • Potential capital gains:This is an important factor in your decision in what area you will buy an investment property.
  • Potential rental returns: This will determine how much rent you can charge for your investment property.
  • Planned Changes: This will need to be considered as changes to the area may add or decrease the value to your property.

Hotspots - Property Investment Victoria

Find Investment Property take the guesswork out of finding hotspots in Victoria. The regions in Victoria include:

Following is a list of the Victoria locations that will outperform in 2009:

  • Cape Woolamais
  • Ocean Grove

Useful resources for buying an investment property in Victoria

  • Capital gains tax - Australian Tax Office – www.ato.gov.au
  • Conveyancers - Australian Institute of Conveyancers (NSW Division) - www.aicnsw.com.au
  • Rental reports – NSW Housing - www.housing.nsw.gov.au
  • Planning reports – Planning NSW - www.planning.nsw.gov.au
  • Property managers – Real Estate Institute of NSW - www.reinsw.com.au
  • Stamp Duty - Office of State Revenue - www.osr.nsw.gov.au
  • Tenant disputes - Consumer, Trader & Tenancy Tribunal - www.fairtrading.nsw.gov.au/cttt.html

Find Investment Property is the best property investment resource online and features the latest new apartments and off the plan investment properties. Whether you are looking to buy investment property or looking for the best property investment research, Find Investment Property has the real estate investment properties you need.