With all of the recent media buzz about house prices increasing substantially over the coming years, I thought this would be the perfect opportunity for me to give my two cents worth on the best types of locations to consider if you are thinking about investing in residential property now.
Ask anyone who has investment property; the best returns are made when your choice of location is based on thorough research and your entry into the area is well placed (that is, early) in a growth cycle. You also need to be prepared to hold onto your investment for a reasonable period of time, to allow the cycle to gain momentum and your investment to mature.
So what types of factors should you be looking for when researching different areas in which to invest? A new or planned influx of employment is always a great start, such as that which comes with a company building a new factory, government programs, or if a new industry has developed in the area, such as mining.
Areas with intended infrastructure schemes are definitely worth looking into. Projects such as new off-ramps on freeways will attract residents, as will roadworks that reduce travelling times into major employment centres. Increased population growth and strong incomes are also important factors to consider.
You may have noticed that most of the factors I've just referred to apply more so to regional areas than to prime city locations and I assure you this was not by accident. When buying an investment property you also have to consider rental rates and recent analysis shows that some regional rents are surpassing growth in Australian cities. In areas such as Dubbo and Toowoomba in NSW, rental rates rose over 8% in last year alone.
There are definitely many factors that must be considered when investing in residential property, but a well-thought through purchase will definitely reward you in the long-term. Century 21 Australia's nation-wide network of offices, in both city and regional areas, prides itself on having a thorough knowledge of Australian real estate, and will be able to provide you with support and assistance throughout the life of your investment.