Investing in property ? a key strategy for future wealth

July 21, 2014
Andrew Heath

Andrew Heath of Richmond Mortgage Choice looks at why investors continue to favour property.

If you’ve read the papers lately you would almost certainly have come across reports about how investor demand is driving the property market.

In fact, a recent Mortgage Choice survey found investors currently account for just over 30% of all new loans written - significantly higher than the 27% recorded just 12 months ago.

Future-proofing wealth drives investors

With this level of interest, it’s worth taking a look at what’s enticing more of us to become landlords. This is where things get really interesting. You see, the same Mortgage Choice research found:

  • 76% of NSW respondents believe an investment property can set them up financially for the future.
  • 58.3% of first time investors in NSW see more benefit in property than the sharemarket, and
  • 47.1% of NSW respondents feel an investment property would help them prepare for retirement.

Clearly, most people view a property investment as part of their long term financial strategy rather than a quick win. And that’s a smart approach. Figures from RP Data show property values climbed, on average, 15.4% across Sydney over the 12 months to July 2014 however those sorts of gains are unlikely to continue indefinitely, and this is why property is best viewed as a long term investment.

 Richmond property remains affordable

Richmond property investors have the advantage of more affordable prices coupled with strong demand. Property website realestaste.com.au describes Richmond as a ‘high demand’ area where listed properties receive around 75 views each compared to the state-wide average of 56 views.

Buyers team up to beat rising values

While investor activity as a whole is climbing, rising property values are making it harder for investors to buy alone. In NSW for instance, just 29.9% will fund their rental property on their own.

Undeterred, first time investors are adopting a variety of approaches to secure their slice of the investment market. As a guide, 63% will buy with a spouse or partner, 4.9% will team up with family members, and1.0% will buy with mates.

Financing your Richmond property investment – the right loan is essential

Your choice of investment loan can make a big difference to the success of your Richmond property investment, and for buyers who opt to pool their resources with family members or friends it’s good to know there are a variety of lenders who cater for these situations.

However the key is to get expert loan advice before committing to a property.

To understand how much you can afford to borrow and the different options available to structure your Richmond investment loan, talk to the team at Mortgage Choice Richmond on 02 4578 9904 or 0411 550 600. Or email andrew.heath@mortgagechoice.com.au.

 Be sure to share our blog on Facebook and Twitter and let others join the conversation.

Posted in: Property investment

Contact us today.


Additional Comments? * :