1. PROPERTY WILL ALLOW YOU TO CREATE WEALTH
For more than 100 years, property investment has been a powerful and proven vehicle to create wealth.
In 2014 Australia’s residential real estate was collectively worth AUD $5.6 trillion, a clear contributor to our nation’s wealth position. Residential real estate in particular, was eight times the value of commercial real estate.
2. PROPERTY GROWTH IS STABLE
The current median price for a one bedroom apartment is $400,000, ranging between $340,000 and $430,000 across inner and outer suburbs. The overall median for a two bedroom is $570,000 with a greater price variance of $410,000 to $610,000 across Melbourne. These prices reflect a rise of approximately 9.6 per cent in apartment prices within the last year alone. That’s far better return than bank interest!
3. THERE IS CONSTANT DEMAND FOR PROPERTY
Like any market, property prices are a mere reflection of basic supply and demand economics. Construction of new developments Australia wide has been a little more than 150,000 dwellings per annum in recent years, adding only 1.5 to 2.5 per cent to the property supply pool each year.
Rapid population growth of major Australian cities, is a significant driver of demand. An increase in the birth rate and net migration inflow has Melbourne’s population set to increase from 4.5 million to 6.5 million over the next 20 years and to outgrow Sydney by 2038.
The effect of “demand” exceeding “supply” is quite obviously an increased need for affordable housing. This has progressively accumulated over a number of years and is reflected by the ‘boom’ in property prices. Everyone needs somewhere to live of course but not everyone has the capacity to buy. There will always be demand for rental properties.
4. USE LEVERAGE TO YOUR ADVANTAGE
Property is the ONLY asset class you can purchase with a deposit of just 20%, giving you a head start. Take advantage of bank funding to own your property.
5. MAXIMISE YOUR BENEFITS
To maximise the success of residential property investment, it is recommended to engage with highly skilled, experienced professionals to guide you through the process. There are countless property marketing companies out there that are happy to sell you a slice of their own development project they’re of course really keen and present the ‘benefits’ but despite the gloss and glitter, it doesn’t necessarily mean the investment is a good fit for you.
When buying property, it can be all too easy to get frustrated by competition and impatience, causing you to fall into the trap of only looking at one project. This could limit your opportunities and stagnate your future buying power for years to come.
Research is crucial to making sound investment choices. At Motion Property, we look extensively at all the factors that affect residential investment property, such as value, transport, quality, design and demand. By focusing on these key criteria, you’ll avoid letting emotions influence your decisions. That way, you’re driving your investment plan forward with knowledge and facts.
Motion property have implemented an easy 5 step process to make property investment as simple as possible by guiding you every step of the way.
The first step is a free investment consultation, where we establish your goals and investment ambitions.
In step 2, we help you determine your borrowing capacity. Our qualified investment advisor will find the most suitable finance package to achieve future positive cash flow.
In step 3, we produce a property investment analysis to provide all the answers you need to select the most suitable options from a wide range of opportunities.
In step 4, we utilise our negotiation power with property vendors to provide you with a host of exclusive additional benefits.
Step 5 is ongoing, it includes mentoring and guidance where we assist you to manage and grow your portfolio with regular reviews of your outcomes and goals.
If you would like to speak to us about building wealth through property, or you would simply like to know more about the Melbourne property market, contact us today on 1300 850 730