Why Invest in Property:
Property markets in Australia have historically enjoyed moderate long-term growth so any investment in property should increase in value over time.
The world has an ever increasing number of people but a constantly decreasing amount of land available to build on.
City housing values are getting beyond the reach of many people and so they will be forced to buy property further out which in turn will put pressure on rural property prices.
The land component will always be there and will continue to increase in value whereas investments in the share market or commodities such as oil or metals will fluctuate with market sentiment and they will always be volatile and react to world events.
It is however a good idea to spread your investments, in other words don’t keep all your eggs in one basket.
Types of Property Investment:
Residential property is the most common form of property investment but certainly not the only form. Your own home will be your first property investment and then you might be in a position to grow your property portfolio and invest in a rental property where you can engage an agent to act as a manager to collect rent and oversee the management of the property. They will take a small percentage of the rental income for doing this but it means you do not have to be the nasty landlord knocking on doors to ask for payment. The agents will also interview and vet prospective tenants and seek to find reliable and trustworthy people.
Commercial property investments are those which could be used for commercial interests such as a retail outlet or office building. These properties are often leased out for a set term of several years ensuring you have continuity and a guaranteed secure return on your investment which would roll on regardless of market fluctuations if they are locked in.
Industrial investments concentrate more on factories and warehouses where customers hold a long term lease agreement, also businesses such as car wash facilities where people make temporary use of it for a set sum.
4. Rural Lifestyle
This is usually a small acreage in the country, not too far from a rural town . If you purchase one of these you need to ensure with local council that it is possible to get a planning permit to build a house and sheds. These blocks are limited and sought over so should prove a good investment. They enable the owner to have enough space to keep a few animals and enjoy a rural lifestyle without having to depend on it for an income.
5. Commercial Agricultural
Commercial agricultural properties can be from 100 acres in size to many thousands of acres. Depending on the area, soil type and access to water they will either be commercially farmed cropping, horticulture or animal husbandry . You need to be very aware of what you are buying when investing in a large scale farming property.
6. Mixed Use
Mixed use properties may be focused on tourism where you will have residential and accommodation facilities and other services to meet that market. The owner would live on site, tourists would buy short term accommodation, and meals and possibly other services such as swimming pool, tennis, bicycle hire etc.
Things to Consider When Looking to Buy Property:
- Is it for you to live in? If it is then consider the distance from other members of family and close friends. Consider also the climate and whether or not it is right for the lifestyle you want.
- Check the value of other properties which have been sold in the same area.
- Is there a dwelling on the property and if not does it have a planning permit?
- Is there any evidence of whiteants or other pests.
- The topography of the land is also an important consideration. If you are getting on in years you do not want a very steep property.
- The soil type needs to be checked and tested to ascertain if it is viable to build on.
- The distance to shopping and medical facilities are also important considerations and if you have school age children the local school and access to it must be looked at.
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