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Signs investors are returning to market



Recent data from PropTrack shows a resurgence of real estate investors.

After having dropped to just a quarter of all mortgage applications, investors once again account for a third of all loans, PropTrack reported. The prospect of achieving record-high rents in cities and regional centres, coupled with lower property sale price expectations has lured back investors.
Many exited at the top of the market at the beginning of 2021, often selling to an owner-occupier. Those deals depleted the rental housing stock and contributed to the current rental crisis. Rents have risen 12.3% for houses and 8.3% for apartments year-on-year, according to PropTrack. By some estimates, tenants are paying an average $3,000 more a year than they were 12 months ago.
While investors have interest rate challenges like everyone else, market dynamics have rarely been so attractive if you want to expand or start a portfolio. Successful property investment is a long-term play, and with Australia’s population forecast to hit 30 million in a decade, the need for affordable rental accommodation will not go away. 
Check out these handy reminders and tips on what makes a great rental property. 

Location is key

If you invest in the right areas, you’ll always find tenants. The hallmarks of hot rental areas are cafes and restaurants, good transport connections, schools, universities, hospitals and employment opportunities. 

Prospective tenants

Think about the type of tenant your property will attract. If you’re buying a one-bedroom apartment, you’ll likely aim for younger tenants who value access to the CBD and local cafes and restaurants. If you invest in a family home, you should tick the school and transport boxes.

The basics

Look at each prospective property as if you were the tenant. You’re not going to stay there forever, so it should be practical and convenient. You’ll want a decent kitchen and bathroom. Some natural light in your living area would be a sweet bonus.

Maintenance

Issues arise with every property, but you want to choose one requiring minimal maintenance. No tenant wants to complain about dripping taps, leaking showers or rotten window frames, and you certainly don’t want to keep spending cash on fixing that stuff.

Use experts

Seek professional financial advice before investing. There are many benefits but a lot of rules for landlords.

Think long-term

You should be confident a property investment fits into your personal financial plan. Again, discuss your aspirations with your financial adviser before doing anything.

NOTE: The information in this article is general in nature and provided as a general overview  only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice.


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