Buying Investment Property
Can I be presumptuous and say that there are 2 things I already know about you when you are in the process of buying investment property?
Humour me, just to see if it is true for you...
Now you may say "of course, who doesn't want that?"
I agree, everyone wants these two things but here is the problem...,
it is not reflected in the types of property many people buy for investment.
So, think seriously about these two aspects again and if these two objectives are genuinely true for you, then reading this information will prove very beneficial so you can avoid the trap of wanting these two objectives but missing out.
Here is a fact which can be backed up by statistical information and an often forgotten source of knowledge, common-sense.
"If you want to have the highest safety whilst experiencing very high investment performance, then new houses are the best source of investment property in Australia"
Not much is said about a home investment in Australia but there sure is a lot of marketing hype about apartments, flats, units or townhouses.
The truth is, for investment property, Australian conditions are most suited to homes, not apartments, units or townhouses.
This information will show you the reasons why a home investment is a better property investment. And when I say 'better' I mean for both safety and performance.
But first, whilst it may be obvious to some, it is important to understand...
What is an apartment, unit or townhouse?
Apartments or flats, are medium to high density living. Multiples of small accommodation contained within one building.
Units are a cluster of small, single level homes, all on one block of land, which is sub-divided. Often, the buildings are linked together with adjoining walls albeit sometimes only a garage wall. Sometimes they are detached but are still within the one sub-division of land.
Townhouses are usually larger and sometimes detached from other buildings but they are all two storey, which should be avoided for investment.
Two storey structures deter many tenants and also reduce your resale market. The reason for this is that many people do not want two storey as a life style issue. Two storey also adds unnecessary costs to the construction and does not provide additional capital growth to warrant the expense.
Apartments, units and most townhouses, require a body corporate due to the common areas of buildings, land or driveway, that are shared amongst all occupants.
Homes grow by more (capital growth) or similar to apartments, units and town houses, not less.
|2.||Homes represent over 80% of the residential market, making houses the most popular form of accommodation|
|3.||Homes are easier to re-sell due to the fact that more people want houses than apartments. This allows a re-sale to both owner-occupiers and investors. Whereas, apartments are largely purchase by investors.|
|4.||The Australian Bureau of Statistics proves that over 80% of Australian's want more space in their house not less. Tenants are no different|
(The following section on the benefit of outer suburbs is a quoted extract
from Terry Ryder, respected Australian property research specialist)
Outer Suburbs Outperform Inner Suburbs!
Read that heading again!
There's no statistical basis to the claim that the "better suburbs" close to the city are the safest investments and are better at resisting downturns.
In fact, the figures prove it wrong. I call it The Myth of Prime Out-performance. It's a mantra for property professionals, who have repeated it so often it's come to be accepted as truth by many investors.
The myth of prime out-performance has become widespread throughout the real estate industry and subsequently deeply entrenched in investors' minds.
The key thing about the claim of superior performance by prime suburbs is those who make it never support it with figures. They have an attitude but they don't have an argument. The reason they don't back it up with data is that the facts contradict them.
The reality is actually good news for those investors that can see past the hype. Most buyers can't afford the expensive inner-city or waterfront suburbs - but who cares! The less-favoured suburbs are cheaper, have higher income yields and provide higher capital growth. It is a win-win-win situation.
This situation has been repeated in major cities around Australia.
The facts are that in any capital city, the expensive inner suburbs are generally poor long-term performers in terms of capital growth. Above all, their price patterns are volatile roller-coaster rides that can produce sharp declines, contrary to popular claims they always hold their value.”
Hopefully by now this is soaking in and this is just the start. There is so much more to explain.
Whilst new houses are they best investment in Australia......
not all houses are suitable
The easiest way forward if to show you why and what to buy...
We have a free service which explains:-
1. How investment property works
2. Why it could be the best and most powerful investment you will ever own.
3. What type of house to buy so that you achieve maximum safety and maximum profit
There is no obligation, just find out how it could work for you and you decide if it suits you.
There is nothing to lose in finding out contact us now !
'Boutique' means the property is uniquely designed with a strict proven formula to deliver strong investment results. It is also designed to suit your budget and deliver maximum investment safety.
We do not build off-the-shelf property. To do so, would compromise your investment safety, rental yield and capital growth.
We recommend that houses be used for investment purposes rather than units, apartments and townhouses, due to the additional safety and investment performance of houses.
Houses have none of the problems that can be experienced with a body corporate which is required for units, apartments and most townhouses.
The biggest residential resale market is for homes. This represents over 80% of the residential market. Hence, an investment property home is much easier to resell than a unit, apartment or townhouse.
A home suits both investors and owner occupiers whereas most units, apartments and townhouses are resold back into a market which is predominantly uneducated investors. This severely limits resale opportunity.
Australian's want more space in their home, not less. Tenants are no different, they like space too. Homes offer that space.
These boutique designs create homes that attract high capital growth and rental yield, which means you do not need to unnecessarily expose yourself to the increased risks associated with units, apartments and townhouses.
Our experience since 1983, proves that boutique houses are easier to rent, easier to resell and consequently more profitable.
The resale ability is the key!
Warning: not all houses are suitable.
Looks are one thing but the floor plan, specifications, fixtures and fittings and external aspects, all need to be considered.
Each house requires specialist design, as does finding the right land site. Of course, this all presumes you want maximum rent yield, capital profit, a trouble free experience and safety!
If so, all of these elements are vital to ensure your investment property is a big success.
To the untrained eye, it may seem that any new home would do the job. Do not fall into that trap, it will cost you big time.
We have been designing and developing property for years and we still learn and tweak the designs. Our experience and in-depth knowledge will help you get what you want with safety along the way.
Our design and development service covers all of the important requirements to ensure your success.
Or click here to find out Why we are different
Isn't it time you turned the tables on the taxman?
Let him pour some cash back into your pocket.
Click image below to slash your tax and create wealth
Contact us now on the quick-phone 0419 556 783
servicing Melbourne, Gold Coast and Brisbane