Residz Team 4 min read
Expert Andrew Winter looks at a new online research tool for property investors
There are at least four reasons property investors are back bidding for real estate. Fear of missing out, low interest rates, nowhere else to spend money, and feeling wealthy from rises in the value of their primary home. Property investment is often seen as a reliable path to wealth creation. However, finding the perfect investment property can take time, and is not without its risks.
ASIC lists the pros and cons of buying an investment property as:
As well, there are differences between rates of return over time for different types of properties, and between different localities.
Many inner-city units have sat empty for much of COVID-19, with foreign students shut out of Australia, and remote-working locals moving to lifestyle locations.
SQM Research shows that in August rental vacancy rates rose in the lockdown-stricken capital cities of Sydney (7.8%) and Melbourne (8.3%). Yet Adelaide, Canberra, Perth, Darwin, and Hobart all recorded rental vacancy rates below 1%, and Brisbane's vacancy rate remained constant. SQM expected vacancy rates to fall further in September.
Investors are widening the scope of their search.
“Traditionally, investors have looked for certain essentials when it comes to buying property,” says Andrew Winter, expert home buyer and seller, best known for presenting Selling Houses Australia and Love it or List it.
“That could be proximity to the CBD, prospects for employment, education, even how far it is to the local coffee shop.
“But with the growing move into the suburbs or regional towns, are these still relevant?” he asks.
Investors now need to consider factors that might be attractive to lifestyle-seekers. This could include internet speeds, distance to the coast, affordability, land size, and local amenities.
As always, investors need to ask themselves:
Write a list of what factors are important to you, and those which might be important to renters now and into the future.
It’s never been more important to prioritise research. Restrictions on travel and in-home inspections mean many investors are buying sight-unseen. And with a lack of supply and double-digit price rises expected before December, plenty have genuine FOMO (a fear of missing out).
Andrew Winter says it can be “a helluva job” for a property seeker to bring all the research together to make a considered decision.
Andrew says free website Residz makes it easy for property investors to see information they need to make a confident decision about their new investment property.
By typing in a property address, suburb, or town, Residz shows Google StreetView plus average property prices and recent sales, and an extensive list of risk and lifestyle information for any potential investment.
“You can research property hotspots over the last few years,” says Andrew, “and compare that to the current trend data, including average rentals, family structure, crime stats, education results and employment. When put together they should give you a very good idea of the investment potential of any locality.”
He points out that you can even find out more details about your own home on Residz.
An appealing feature of Residz is that every home in Australia is shown, not just those for sale. This is the home buyer and property investor’s golden goose. Being able to research all the homes and units in desirable lifestyle locations opens up opportunities for the curious property buyer. For example, areas that have dropping crime rates, and/or development applications for subdivisions might be gentrifying. Areas with high levels of older residents may see more houses coming up for sale. Touring neighbourhoods online prompts buyers to think creatively. What is the data telling me about this area?
Rents used to be stable in regional areas, but rising property prices have led to rent rises in most regions around the country, notably the North Coast and Blue Mountains in NSW, the Mornington Peninsula in Victoria, and Toowoomba in Queensland, shows research. Investors are spreading out and buying up affordable properties that offer lifestyle benefits and deliver good rental returns. Residz is revealing more about these properties than ever before, offering new insights to all those investors, first home buyers, and property enthusiasts stuck at home.