Keys To Having A Successful Property Investment Portfolio

1. Performance & Growth – Keys To Having A Successful Property Investment Portfolio People often want to know which suburbs offer the highest capital growth when they think of investing in property. Because most people focus on increasing the property’s value over time, and not on the potential cash flow from it, this is why they are so unsuccessful in creating wealth through property. Capital growth is determined by the laws of supply-demand. Buyers will increase prices if the demand for properties is greater than the number of properties available in the region. This happens because they are competing to buy in the desired location. Investing In High Performing Suburbs This is when investors target an area in the suburbs of major cities where there is not much opportunity for developers to build additional houses. The area is becoming more populated and people are looking to live there, so they will have to compete for existing properties. This

2. can lead to higher prices and more buyers. This investment strategy is best suited for investors who have adequate funds who can afford in most a large deposit of over $100,000. This is because they are trying to invest in a high profile, high demand suburb where the competition is intense and supply is very limited. This strategy does work for investors simply because of the fact that properties in these high demand areas are often good rental locations as well and they are start making rental income almost within the first month in most cases. Investing In A New Developing Suburb This is when the government invests in new suburbs to accommodate our growing population, and also invests heavily into infrastructure projects. Because the area is home to many more housing options, both tenants and homeowners are attracted. The suburb is affordable, and there are new schools, transport, roads and shopping centres. There are also job opportunities. Despite the strong supply, prices can still rise due to overwhelming demand. . Properties can be good investment in most situations in the Australian market and is very good for investors who can do significant research in terms of the best suburbs to invest in within Australia.

3. Costs Involved When Investing In A Property An initial deposit of about 10% which you should use as a minimum , stamp duty fees and legal fees are all part of the cost that you will incur when buying a property. Bank lending fees is something to consider as well. The most significant cost will of course be your deposit and you will need to check on how much equity or cash you have before going to the banks for a loan. What Type Of Property Investment Would Yield Maximum Capital Growth The same supply and demand logic that we mentioned in the previous segment applies when assessing how much growth you can expect from a specific type of property. Apartments tend to perform better in established areas where there are few new homes. The supply of apartments in areas where developers are able to keep building more can cause price growth to slow down. On the other hand , simply buying a large block of land in a suburb where you are expecting a big growth can work wonders in a few years once the area starts developing. Capital growth is the key to wealth building and this in turn also helps in generating deposits and stamp duty to pay for future property purchases. However, it is important to choose a location that matches your borrowing capacity. Otherwise you could hit a wall with financing in the future.

4. As much as capital growth is essential for wealth creation, rental incomes are crucial to ensure that your income is sufficient to pay off loans and other investments. Investors often focus only on growth and become frustrated when banks stop lending them money after the second purchase. Capital growth is also a key factor in rental incomes. Rental yields will decrease over time if there is high capital growth but low rental increases. This is true even in areas with low capital growth, but high rental demand. An another indirect investment opportunity with property is to consider investing in a property fund or development where you don’t get to own the property, however achieve high returns by getting paid an interest on your investment on a monthly or yearly basis pretty much from the 1st month. Please consider factors such as potential of the project and do a full study on the development and what it has achieved so far before considering investing. Final Thoughts If you are serious about getting into property investment, please do a thorough research every time about the location and its development before investing. If you want to maintain multiple investment properties across Australia, keep a balanced portfolio by investing where you could have low rental income but high growth potential

5. when selling a property and other option being an investment property which could yield you high rental income but may not be as a big a profit when selling it. Also, consider talking to a Australian Investment Company that can manage all your property investment requirements.