Where To Now For Property Investment?

With properties suitable for investment coming off the boil in the larger capital cities, people with property market know-how are advising their clients to steer clear of high-density apartments in areas that are now facing an oversupply. This is contrary to much of the information coming out of the industry over the past few years, and has left many investors bewildered about where to look for their next purchase.

Simple Property Solutions are the Best

In confusing times such as these, it is always best to look for the simplest solution and to apply some good, old-fashioned common sense. Asking some sensible questions is always a good place to start, and the first question should be about demand. What are the most likely locations that are suitable for those prized, good tenants who pay their rent on time and don’t wreck the property? If you are interested in taking that first step into the investment property market, we can help you answer that question. Prudential Real Estate services a number of Sydney suburbs and our staff has the local knowledge and up-to-date statistics to help you make a considered decision based on facts and not speculation.

Investors Moving from Speculation to Security

We believe the modern buyer is now wary of speculative investing and is more interested in taking a long-term view of their holdings. They want to build a portfolio that delivers reasonable rental returns in the short term, with the possibility of solid capital gains further into the future.

Great Tenants Want an Appealing Lifestyle

To achieve this, we must go back to our original question about what tenants are looking for. Our research tells us they want rentals in suburbs with lifestyle appeal, where they can park their cars in their driveways and not on the street. They want to go out for great coffee in their own suburb, not drive halfway across town. They want space for a dog or children or both.

Transport Infrastructure and a Growing Population Equals Rental Income

Ready access to employment is a must, so close proximity to transport infrastructure is very important to great tenants. Suburbs where this is being upgraded to provide more capacity, or where new infrastructure is under construction will be heavily in demand.
Suburbs where the population is increasing is evidence of emerging prosperity. Investors should be looking for these opportunities, even if prices are higher. Cheaper places will be available in areas under stress where people are leaving for greener pastures. However, good tenants will not want to live there, so the cheap purchase price will soon be offset by diminishing rental income.
Up-and-coming suburbs have a vibe to them. They are clean, tidy, bustling and full of promise. That is what the best tenants want, and we can show investors around these suburbs if they contact us.

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