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  • The best places to invest in real estate: lessons from the past

The best places to invest in real estate: lessons from the past

October 5th, 2018

The best places to invest in real estate: lessons from the past

More than often people choose to invest their funds into a local investment however is that the best idea? Will it give you the best return or is it just the security of knowing you are around the corner for repairs? We sift through some previous experiences from other investors alike to share the worldly knowledge on the matter.

In todays day and age we are so lucky that technology is at our finger tips. With online emails, calendars, facetime you can be living across the other side of the country without missing a beat. If you have a property manager on board they look after all of the smaller nitty and gritty alleviating the stress of firstly having an investment property but also the distance and time situation that before may have caused investors hesitation.

Before picking where to invest it is in your best interest to pick the right city. You need the suburb to be desirable and you need a good rental return. A recent article from Perth Now found that the chairman of Property Investment Professionals of Australia, Peter Koulizous examined a 10 year home price movements across thousands of suburbs and towns and discovered key trends that can help investors make decisions. For example do not fall into the trap of using the old saying that prices double every 10 years. Home prices in once-off booming mining towns including Port Headland, West Gladestone, Roxby Downs and Newman are still more than 40% below their levels of a decade ago.

“Successful property investment is about long-term economic fundamentals, not supposed short-term financial gains,” Mr Koulizos said.

“And that usually means investing in locations with diverse, multifaceted economies, not areas that financially ebb and flow depending on the strength — or weakness — of a single industry.”

“The most important thing is the right city,” he said. “The top-performing suburb in Adelaide was nowhere near the worst-performing suburb in Sydney. Pick the right city, then the right suburb and street.”

Mr Yardney said a lot could happen in 10 years, and key lessons included:

• Neither booms nor busts last forever;

• Beware of doomsayers, who for decades have been claiming that prices will plummet, and;

• Property investment is a game of finance rather than real estate, best illustrated by tougher recent lending restrictions.

“If you can’t get more finance you can’t buy more properties,” he said.

 

So there you have it the wisdom of the expert. Always keep in mind that media can also mislead the market. Do not believe everything you see, do the research. It can be overwhelming to begin however this a big investment for your future and when done correctly can lead to future investments.

About the Author

Celestine has been in the Real Estate Industry since 2002. She has competed in some of the most competitive markets in Australia. Combine her strong negotiation skills and keen customer service to achieve the best results for her clients.