Guide to Property Investment During Crisis

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Thinking of investing in property, but not sure where to start? Hesitant because of the current crisis?

Australians are infatuated with the property. It is like a pastime for almost 70% of Australians. That is why they commonly call themselves landlords and, with residential real estate accounting for more than half of all household wealth. 

Finding the right investment property

More than ever selection of the right investment property is going to be critical. 

It’s the most important part of successful real estate investing. After you’ve determined your budget, it will be easier to narrow down your search to a particular location that meets your objectives. These are generally properties that will have the greatest potential for capital growth and rental return.

Especially in uncertain times like these (at the time of writing we’re currently experiencing the Covid-19 Global Pandemic), property values will hold up but only if they have these features:

  • Properties that are in high demand from tenants

  • Access to public transport

  • A wide range of amenities, including shops, schools and leisure facilities

  • Access to employment opportunities or be within close proximity to these

Watching the market

Monitoring the market is a key part of any successful property investment strategy. 

Your first step should be to identify what market data or performance metrics to track. Some key indicators to keep an eye on include:

Value trend of the property

The trend of property values, and if it is rising, flat or falling. Here, suburb sales data can help you identify which postcodes are posting high growth rates. If values are rising fast you could have identified a booming suburb.

Days of the property in the market

If properties are selling quickly, then a short day on market (DOM) metric is a good sign that a market is hot. But, you must know the market, as the figure can vary depending on location.

Auction Clearance Rates

Auction clearance rates are the percentage of the total number of properties sold over a week or month.  Anything over 70 per cent is likely to indicate a hot market, though this will often depend on the local area. This is where you can start positioning your investment with the current property market status. 

You should also take into account areas with the potential for growth in the next three to seven years.

In terms of data insights and sources, you are spoilt for choice, and it’s easy to get overwhelmed. Why not book a free 30min consult instead: https://www.sandcastlefinance.com.au/contact-us/#book

Given the current monetary easing policy, there are ample opportunities to enter the market now or refinance your existing home loan to take advantage of all-time low-interest rates. 

Speak to us today: https://www.sandcastlefinance.com.au/contact-us/#book

Sally Prowse