There are a variety of approaches that you can take to property investment in Australia, as well as a range of different opportunities for growing wealth through property. This means that it’s important to have an understanding of the various factors that impact on house prices if you want to make a smart property investment that helps you meet your financial goals.
One of the most effective ways of finding the best suburbs to invest in is to look carefully at the range and scope of the infrastructure that is planned in the case of a new development, as well as what may already be in place in a more established area. This is vital, as infrastructure is often the key to determining demand, both in the short and longer term, and is one of the major drivers behind an increase in property values.
The impact of infrastructure on property prices
Infrastructure creates demand in a number of ways, and an area that has transport facilities, education centres, health or retail precincts is generally going to have more appeal than a location where they haven’t yet been planned or built. Knowing the scope and range of current infrastructure, plus what is in the pipeline in an area where you are planning to buy an investment property, is therefore key to producing both high rental yields in the short and medium term, and capital growth over time.
For instance, new developments need adequate transport links if they are to have appeal to renters, especially in the early stages as they are becoming established. This includes both roads and public transport, as accessibility and a variety of ways for getting around can be a key determining factor as to whether an investment property is consistently rented out. Good transport links (including relatively easy access to airports) also mean there is more likelihood of a property appreciating in value over time, as these sorts of features are always desirable.
Accessible services (in particular, education) and a range of retail facilities also contribute significantly to both immediate and ongoing demand in new developments (as well as established areas). A new suburb which has (or is going to have) a kindergarten or a school will always be an attractive place for young families to rent in, for instance, as will housing developments where there is good access to health and medical facilities. Similarly, areas that feature shopping centres and retail stores within easy reach are always going to attract tenants and will be more likely increase in value over time as well.
Anyone considering investing in property located in a new development also needs to take into account other features with community appeal, such as entertainment and sporting facilities, as these will contribute to a consistent flow of renters and ultimately produce capital growth.
What sort of property investment advice do you need?
It can be challenging learning everything you need to know about how to invest in property in Australia, not to mention getting access to industry information that will help you grow your property portfolio. As detailed above, it is important to have an understanding of any planned infrastructure in a new development, for example, including information on planning permissions awarded, construction schedules, and other factors that contribute to infrastructure growth. This sort of detailed knowledge can be hard to get hold of, yet it’s vital to any successful property investment.
Likewise, how is the individual property investor able to identify those developments where infrastructure planning is well advanced, particularly if it is in another state or a part of the country that you don’t know especially well? How can you tell whether a new road building project has been tendered and the work confirmed to go ahead, as opposed to a development where the infrastructure is only on the drawing board?
Before you pursue any real estate investment strategies, you should ideally seek expert property investment advice so that you can be sure you have access to the best new developments across Australia, and are fully informed about potential and planned infrastructure in any area where you are considering investing in real estate.
Quality property investment advice from Power of Property
When you need property investment advice, Power of Property is always here to help.
Our expert property advisers analyse the most up-to-date industry information and market trends in order to identify areas of the country where there is likely to be significant and growing demand, thanks to new and planned infrastructure.
In addition, our experience and expertise means that we have access to information about new property developments across Australia that isn’t always widely available to the individual, everyday investor, and so we can offer a range of opportunities that you might otherwise miss.
If you want to find out more about a range of options available across Australia in high growth areas with significant potential, our specialist property advisers are here to help. Call Michael Lawton on 0407 785 560 or Danielle Charlton on 0411 268 795, or book an online property strategy session at a time that suits you.