Another interesting property investment article by news.com.au on 27th
July, 2013 about buyer's low interest rate as property values are primed
to grow.
SERIOUS money is waiting to be made in property investment but most Australians don't want to know about it.
RP Data has revealed property values and weekly rents are primed to
grow in many regions, but studies show people are reluctant to invest
in property over shares and savings accounts.
A Ray White Projects
survey found 11 per cent of 1500 adults owned an investment property,
while only 3 per cent owned two or more.
"It's hard to believe 86
per cent of Australian adults do not have an investment property," said
Dan White, Ray White Projects director.
"It contradicts the commonly held perception that bricks and mortar are one of the safest forms of future planning."
The
survey showed 59 per cent of people wanted to see an increase in
property prices or greater market stability before investing.
"No one knows exactly how or when a property market will change
direction," Mr White said. "When it does, people are surer about the
investment. They might not make as much as if they bought at the bottom,
but they won't lose money."
Some of the best investment
opportunities can be found in Sydney's western suburbs, where affordable
properties attract high rental returns, due to a low vacancy rate.
"Areas
like Liverpool, Campbelltown, Blacktown and Penrith are fantastic,"
said Nathan Birch, investor and founder of buyer's agency B Invested.
"There's
a lot of infrastructure going in: the M4 and M7 can get you to the city
or airport in 45 minutes and it's currently cheaper to buy than rent."
According
to RP Data figures, houses in Blacktown Council's area can be bought
for just over $200,000 and have rental yields of up to 7 per cent -- the
highest in NSW.
"Capital gains are the best in affordable areas," Mr Birch said.
"A
$1 million property in Mosman will not double in value any time soon,
but if you invested $1 million in multiple Mt Druitt properties, the
values would double much quicker."
Adrian Allen and partner Lisa
O'Donnell have three investment properties in Sydney's west. "Our
Bidwill property cost $181,000," Mr Allen said. "It then rented for $330
a week, which is a 9 per cent yield. It was positive cash flow straight
away."
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