If you are considering the purchase of an investment property, it is worth noting that reduced home prices and interest rates that have remained quite steady for some time, making this an excellent time to invest. It is quite commonly understood that purchasing an investment property in Sydney, or one of Australia’s other booming locations, will yield good returns on your money in the long term and is one of the safest investment possibilities.
While committing to the purchase of any property (be it a property in which you will live or one that you buy for the sole purpose of property investment) is always a financial arrangement that demands ongoing commitment. The purchase of bricks and mortar has always (and continues to be) one of the safest and less risky ways to channel your money.
So, why is it that the time is now ripe for buying an investment property?
1: Property prices have consolidated
In many parts of Australia, a decrease in the prices of residential property has been observed and this is great news for those in the market to buy an investment property. Sydney has typically had a property market that is difficult to enter because property prices have been so high, but lower prices increase the possibility of more potential investors buying investment properties.
Because prices are lower than they have recently been, investors are better able to secure a good quality investment property at a reasonable price.
2: Interest rates are the lowest they have ever been
In terms of interest rates, property investors are happy to hear that interest rates are at their lowest they have ever been. With the Reserve Bank of Australia anouncing recently they would not be pushed into increasing rates in the near future. The fact that interest rates have not dramatically increased lately, but have remained quite low, inspires a degree of confidence in investors.
Certainly, current interest rate trends mean that the money of investors is working quite hard for them.
3: Demand is high for quality residential properties
When buying an investment property, it is vital to ensure that the property you purchase will be attractive to potential tenants. This means that you need to purchase in a desirable area that is well located in terms of access to transport, shops, schools and services. You also need to ensure that you purchase a property of the type and with the features that appeal to the type of tenant that you want to attract.
By following some sound property investment advice, you will be doing all that you can to ensure that your investment property is attractive to tenants and easy to let. Because demand for quality residential properties is high, it is wise to ensure that your property stands out and is sought after by tenants. When you have plenty of potential tenants applying to live in your property, you can select the best tenants possible and enjoy good rental returns.
4: Investment property tax deductions
While it is generally unwise to buy investment properties only for the possible tax deductions, the fact remains that many people are able to enjoy some financial benefits and returns through ownership and the losses made on their investment properties. Of course, it is necessary to consult a professional to understand the deductions and benefits to which you are entitled.
In Australia, it is a good time to buy an investment property. With interest rates so low and property prices stable, the financial conditions are ripe for people to enter the property investment market or add to their investment property portfolio.
However the right advise is needed to be sure your purchase the best property available at the right prices leave your details on the form found on this page and we’ll get back to you to discuss this further.