5 Secrets to Successful Investment in the Australian Property Market

When it comes to property investment, there’s no doubt about it – things can be daunting and confusing.

Well, that’s OK, because we’re here to help!

At Propell, we’re all about working alongside you to build confidence and structure around each stage of your property investment journey, ensuring you can work towards smashing your financial goals.

So, you’re probably wondering how this can actually be done…

Well, today’s your lucky day, because we’re here to share the 5 secrets to Australian property investment – so stick around and enjoy!

1. Know who will rent your property BEFORE you buy it

   No, this isn’t about lining up the exact tenant who will be living in your property and making them sign a contract…

   Instead, it’s about understanding the general type of tenant you will be renting to when you purchase or build your property.

   Is it a family? A couple? What does their financial status and job situation look like?

   Having an idea of the kind of demographic and profile you are renting your property to will help ensure that you can best adjust or design the home to suit. This is especially important when looking at building a new property as an investment. Understanding the area and typical residents goes a long way to ensuring that you’re meeting demand and creating a property that people want to live in. We tend to love Owner Occupier heavy areas – not only because there is that notion of higher demand, but there also tends to a nicer community feel.

   At the end of the day, understanding the demographic of your investment property’s ideal tenants is a win-win! Higher demand for your property means that you have stable rental income, and an understanding of the tenant profile means you can create a home that people actually want to live in.

2. Ensure there is upside and the ability to ADD value

   Upside can come in many forms – so let’s chat about a couple of them:

   • Property-Based Making additions to the property itself can help increase the value of the home, as well as the demand as a rental. When building, consider things like storage, high ceilings and outdoor space. Consider what you (or the ideal tenant) would love. Check out the full BLOG for all the details!

   • External Value As you’d know, we love adding value and building equity for our clients – especially if it can happen BEFORE you’ve built the home, or you have anyone living inside…

   We LOVE wholesale when it comes to sourcing and purchasing property off market, meaning that developers and real estate agents don’t pass on the extra commission and marketing costs to you – the buyer.

   Want to learn more about wholesale property, check out the full blog HERE.

3. Location, Location, Location!

   Location is arguably the MOST important factor in purchasing an investment property. You know the old saying – buy the worst house in the best street, not the best house in the worst street.

   Why? Because a quality area is what draws in quality tenants, increases demand and provides you with a foolproof recipe for long term financial gain.

   When we talk about location, it’s not necessarily about whether there’s a park and a swingset on the corner, or a beach across the road – location is about the economy and long term growth.

   Properties in locations that have a high demand, and low supply of new houses, alongside favourable macroeconomic factors, such as unemployment rates and migration patterns are the ones that allow your portfolio to thrive.

   For more details on how location affects property investment, check out the full BLOG!

4. Hold property for the long term

   Across the board, whether it’s property, finance, stock, or any other type of investment, the overarching advice leans toward building equity over longer periods of time. It’s safe to say that as time passes and inflation occurs, money can be made by harnessing growth.

   It can be easy for investors to get caught up in the cyclical fluctuations in the market, flipping quickly when things go up, or dumping them when there’s a slower period. But the thing is, the upward trend in the market is as true as time itself – so holding on with long term strategy is your best friend as an investor.

5. Have a cash buffer

   Like with any investment, when it comes to property investment, risk mitigation is critical. Having a buffer of liquid cash (in the bank) serves as a great safeguard.

   We typically recommend $20-$30K as a buffer, to ensure security if struck with an emergency, change of circumstances, or anything in between.

At Propell, we’re here to ensure that your property journey is one of direction and confidence. Relying on crystal ball predictions isn’t our game – instead, we’re here to help you build long term confidence and equity through the perfect combination of communication, strategy centred research and understanding of YOUR goals.

Want to know more about getting started as a property investor in 2024? We’d love to help – give us a call on 1300 776 735, or get in touch HERE!