By Sharon Koh, KEO
Date: 21 Oct 2020
Melbourne one of the world’s most liveable cities and a major hub for students looking to enrol in top education institutions such as the University of Melbourne, Monash University and RMIT University. To be able to live centrally while simultaneously pursuing quality learning is a fundamental reason why anyone should look into investing in property within the city centre.
Prior to enrolling your kids in school, planning is pivotal, especially to ease any possibility of financial strain. At GREEX, here are some reasons on why investing in Australian property could potentially assist you in supporting your child’s education.
1. The right type of investment property yields better passive income.
Propertyupdate.com.au encourages investing in suburbs where wages increase above average. These areas tend to have a history of strong capital growth, and it’s highly likely to outperform averages. Not only does this guarantee you a disposable income, these areas also are more likely to attract owner occupiers because of the demographics of the area. Such demographics could include attractive lifestyle choices and proposed future economic development plans for the district.
Other areas that are worth investing in include those with an X-Factor or a unique characteristic to it. It’s Unique Selling Point (USP) is what pulls the buyer in and increases the chances of occupancy.
Finally, the most ideal investment would be in locations where capital growth can be manufactured through refurbishments, redevelopment or renovation. Upgrading an area not only creates positive cash flow, it also appeals to the targeted buyer as a newer property; something they might be looking to make a forever home.
2. A steady income builds a comprehensive education.
A child’s education ranges over quite a broad period of their lives, and a steady income is ideal to support them fully.
With the property market across Australian cities expected to grow over the next few years, the combination of lower interest rates and increased economic growth, investors should take this opportunity to make longer-term capital gains.
Based on nelsonalexander.com.au, investing in Melbourne is higher on many property buyers agendas’ at the moment due to indicators that its real estate market is performing well. As an investor, a steady property market is key to making that investment choice.
The Australian Bureau of Statistics (ABS) showed a 2.9 percent quarterly rise in Melbourne’s property prices in 2015, and every year, it has remained consistent at a 9.9 percent increase in comparison to Perth’s 3.3 percent decline and Sydney’s sudden property market boom at 19.9 percent. After all, what goes up must come down and consistency has always been the key.
- The Property over Shares AdvantageShares are known to be one of the many great investment strategies that people look toward. However, as onproperty.com.au states, shares take longer to generate the passive income that you might need to put aside for your child’s education.Banks will finance you for your property whereas shares are much harder to borrow against. Using a property that generates rental income as one of your investment strategies allow you to readily generate the passive income you’re looking to earn.Property is a long-term investment. It yields higher returns in the long run, if you invest in good capital growth areas. This factor is something all investors should consider, especially if you’re looking for an unchanged and consistent income.Although there are many positive factors for property investment, it would be surprising for one to jump straight into the investment market without incurring any initial doubts.Yes, much research has shown a consistent increase in value of properties and reassures you a stable passive income. However, when investing, one has to consider many external factors. As mentioned by klearpicture.com.au, the property market is not always a predictable one. It can experience both growth and downward spirals, hence, it’s advisable for new investors to take into consideration the risks that come with purchasing an investment property.
Every opportunity grabbed is new hope for a dependable income. As long as you are willing to dive deep into the real-estate domain and build a substantial property portfolio, you might be on the road to becoming a master investor.
We hope that this simple article has helped you form a better understanding of the property investments in Australia. Do feel free to join us in our upcoming webinar session to clarify any doubts you may have.
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