Opportunity knocks as some investors begin to sell

If you're an experienced investor who thrives on counter-cyclical opportunities, it looks like the current property market is a perfect time to strike. New data from industry researcher CoreLogic shows investors are more willing to put their properties on the market than owner-occupiers.

It's no secret that housing inventory is down against historical averages, but the gap between properties for sale between owners and landlords is surprising.

CoreLogic reports there are 20% fewer properties for sale by owners when measured against 10-year monthly national averages. For landlords, there is only a 3% fall against the same benchmark.

As an experienced agency in your area, we see various issues responsible for this result. Despite the record-high rents, landlords also have to deal with higher mortgages and are experiencing slower capital growth. Publicity surrounding additional scrutiny from the Australian Taxation Office doesn't help.

Investors also tend to refresh their property portfolio more regularly than we might sell our homes. However, these new numbers suggest an opportunity for you.

Our agency has experience working with investors seeking properties that deliver strong rental returns and offer excellent capital gain potential. If we can assist you as an investor or landlord, please do not hesitate to contact us.

In the meantime, here are some property investment tips that might be a timely reminder or inspire you to start your own portfolio.

Strategy – What are your goals? Do you want long-term rental income or short-term capital gains? Both options have risks and rewards.

Homework – Target favourite areas and analyse property values, rental demand, vacancy rates, and market-influencing economic factors. Talking to an experienced agent can help enormously with this task.

Location – Strong rental markets need economic growth, job opportunities, and good schools and amenities. Look for areas where these elements are strong and you'll find excellent tenants.

Advice – Always work with a professional financial advisor or accountant before you start looking to ensure affordability and to take advantage of any tax benefits.

Finance – Work with your adviser to determine the most appropriate financing arrangements. Investigate traditional mortgages and private lenders. Compare rates, terms, and fees as part of your decision-making process.

Risk – Limit risk by doubling down on a property inspection, title search, zoning regulations and potential legal or environmental issues. Also make sure you know regular costs such as council rates, strata fees etc.

Diversify –  Don't put your eggs in one basket. Protect your portfolio by buying different styles of property in separate cities, suburbs and even states. This will protect you against localised economic downturns. But be mindful that different states have different laws which you'll also need to research before you buy.

Paulette Contessi 

Director / Licensee

CONTESSI PROPERTIES