Property success is all about your strategy, you need a plan of where you are going and how you want to get there. Depending on your circumstances your needs may vary greatly compared to another property buyer. Either for yourself to live in or as an Investment, buying the right property is fundamental to making money.
Choosing to invest in either Capital City’s or Regional Areas are two distinctly different strategies requiring a great deal of thought and planning.
Today we will look at the Capital City and some of the elements that are attractive to this type of investment. One of the sayings that I have heard quoted is ‘to make money in Real Estate buy as close to the capital city as you can afford’ this is a blanket assumption but is it true? In my experience, not all suburbs grow at the same rate and a poor choice can lead to a poor performing property. Research and having Industry contacts is the best way to protect your wealth.
Mandy’s 8 reasons to buy property in Capital Cities
Our cities are built and there is largely no new land except where a property has been demolished and in most cases this land is then used for high density residential units to help accommodate more people coming into this location.
A higher population in a concentrated area leads to more demand from renters, therefore you can expect a steadier income due to lower vacancy rates.
Due to desirability, some suburbs can receive higher capital growth than others, even if they neighbour.
There is more opportunity for work in the City as there is a higher number of Businesses and greater diversification of jobs to suit more people.
Increasing population helps to put more pressure on the available housing, which in turn creates higher capital growth and rental yield due to demand.
The easy convenience of walking, cycling, bus, train and taxi makes getting around the city and to work a breeze.
People are drawn to the cities for the lifestyle benefits of entertainment, events and a strong café and restaurant culture. This liveability factor is creating a place where people want to stay, to live, work and is great for visitors.
8. Higher incomes.
To purchase a Million-dollar home you need to have the higher income’s that are available to the professional workers in the cities.
Martin came to us to help him source a property close to Brisbane City for Investment. He already had a strategy figured out but just needed some help with locations. He loved the idea of having professional tenants, with this in mind we chose a property within his budget that had easy access to transport of about ten minutes to the CBD. Additionally, the House had Queenslander character appeal and had been beautifully renovated with a large deck.
The benefit to this client has been for a stress-free purchase and tenants that absolutely love where they live and entertain on a regular basis, that have no trouble paying the rent due to their professional incomes.
Stay tuned for next weeks post on buying in Regional areas and decide which one is right for you.
If you don’t have time, arrange for a professional to do your homework for you.
Learn more about how Real Estate Buyer Services can help you buy property quickly, easily and for the right price.