Hi Fiona, wow, where do we start! Investment… When buying an investment you have 2 choices, do you want prioritise capital gain or your rate of return (cash flow)? Bigger investors try to get both. The idea is to get the highest possible rental return relative to your purchase price while buying where there is also the highest capital appreciation. Generally it is either one or the other. Example; a cheap property in Elizabeth v’s an expensive property in Toorak Gardens. You will get a much higher return on your money outlaid based on rental in Elizabeth but a much higher chance of Capital gain in Toorak. Another factor is the lower the price the more numbers of available buyers BUT bigger potential negative impact if jobs are lost! Remember property investing is a long term exercise, but exciting and rewarding in so many ways.
Look for emerging suburbs to try and catch a property wave specific to an area rather than across the entire market, and where tenants also want to live. I think the western corridor with the new light rail link to the Port will be somewhere to watch. These suburbs have cheapish housing yet with upside of new developments and big Government expenditure…close to CBD, the water and where people want to rent.
An example down your way was Glengowrie. It was undervalued and so close to the beach and CBD, it went up in price faster than most suburbs. A current suburb to me is say Daw Park, modest price, money being poured in by new buyers and close to every thing. The benefit of the western suburbs is the Clipsal redevelopment, Cheltenham and Port developments and all the infrastructure promised.These added factors make it more likely to see accelerated Capital growth and rent increases.
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Hi Fiona, wow, where do we start! Investment… When buying an investment you have 2 choices, do you want prioritise capital gain or your rate of return (cash flow)? Bigger investors try to get both. The idea is to get the highest possible rental return relative to your purchase price while buying where there is also the highest capital appreciation. Generally it is either one or the other. Example; a cheap property in Elizabeth v’s an expensive property in Toorak Gardens. You will get a much higher return on your money outlaid based on rental in Elizabeth but a much higher chance of Capital gain in Toorak. Another factor is the lower the price the more numbers of available buyers BUT bigger potential negative impact if jobs are lost! Remember property investing is a long term exercise, but exciting and rewarding in so many ways.
Look for emerging suburbs to try and catch a property wave specific to an area rather than across the entire market, and where tenants also want to live. I think the western corridor with the new light rail link to the Port will be somewhere to watch. These suburbs have cheapish housing yet with upside of new developments and big Government expenditure…close to CBD, the water and where people want to rent.
An example down your way was Glengowrie. It was undervalued and so close to the beach and CBD, it went up in price faster than most suburbs. A current suburb to me is say Daw Park, modest price, money being poured in by new buyers and close to every thing. The benefit of the western suburbs is the Clipsal redevelopment, Cheltenham and Port developments and all the infrastructure promised.These added factors make it more likely to see accelerated Capital growth and rent increases.
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