Portfolio – Investment Property

Australia’s housing market continues to see new highs with no signs of slowing down, making now a great time to invest in property.

With an extensive infrastructure pipeline, job creation, relative affordability and the return of international travellers and migration, both South East Queensland and Adelaide still have room to grow.

The property sector has long been popular for investors looking to diversify their portfolios and generate long-term wealth.

Whether residential or commercial real estate, investing in bricks-and-mortar assets can have many benefits, from steady rental income to capital appreciation.

What makes a good investment property?

The first step to investing in property is identifying the type of property that best suits your investment goals and budget. There are different types of property options including:

• Residential: This includes properties such as apartments, townhouses, and houses intended for residential use. Residential property can be a good choice for investors looking for steady rental income and potential capital gains over the long term.
• Commercial: Commercial property refers to offices, retail spaces, and warehouses intended for commercial use. Investing in commercial property can be more complex than residential property but can offer higher rental yields and longer lease terms.
• Industrial: Industrial property includes factories, manufacturing plants, and storage facilities. These types of properties can be a good choice for investors looking for steady rental income and potential capital gains over the long term.
• Agricultural: Agricultural property includes farms, ranches, and vineyards. These properties can be a good choice for investors looking for long-term capital appreciation and potential income from agricultural operations.

Benefits of buying bricks-and-mortar real estate

One of the main benefits of investing in physical property is the potential for steady rental income. This can provide a reliable and consistent cash flow over the long term. In addition to rental income, investing in property can also offer potential capital appreciation. Over time, property value can increase, allowing investors to profit when they sell.

Another advantage of investing in property is the ability to leverage your investment. With a mortgage, investors can use borrowed funds to purchase a property, allowing them to control a more significant asset with smaller upfront capital. This is most common with home loans.

Once you have a property in mind, compare the income you expect to your outgoing expenses. If there is a shortfall, consider whether you can cover the expenses long-term. Also, work out whether you could cover all expenses short-term if you had no tenants for a while.

Research the property market to decide how to get an investment property. Where and what you buy can have a considerable impact on your return on investment.

Where to buy

• Areas you’re familiar with will take time to research.
• Look for areas with high growth, higher rental yield and low vacancy rates.
• Find out about proposed planning changes in the suburb that may affect future property prices.

What to buy

• Look for properties with appealing features like a second bathroom, a garage and access to schools, shops and transport.
• Consider maintenance costs based on property type, age and features.
• House and land packages offer the benefits of a depreciation schedule, warranties and minimal maintenance.

Homecorp specialises in House and Land packages designed to meet the needs of investors.  With land already selected in property hot spots and house plans curated to best match each lot, these packages offer a low stress way to begin your property investment journey.