(April 2024 Blog) Total Listings Climb, But Is It Good News For Buyers?
The Australian property market is experiencing interesting dynamics at the moment. Seller confidence appears to have grown, with more vendors listing their properties in 2024 than last year.
According to CoreLogic, listings are on the rise in most capital cities, up 16.6% nationally between February 2023 and February 2024. This suggests buyers have more options for investment.
However, more listings don't necessarily mean more top-quality investment options. In fact, a closer look reveals a noticeable lack of high-quality properties on the market.
Prioritising A-grade properties
For investors, buying quality properties is important. Not only does the type and location of your property affect your potential for rental income, but it can also have a long-term effect on your overall investment portfolio.
These properties serve as the basis of a healthy and diverse wealth portfolio. They can be less susceptible to market fluctuations and will attract reliable tenants. This helps ensure consistent rental income.
Stability in your investment properties allows you to weather economic storms more easily than more volatile investments. It also means you can plan for the long term as your rental income is consistent.
Another key goal for investors is capital growth.
A-grade properties can offer the potential for this. Your investment property can be located in a typically desirable suburb with strong amenities and infrastructure. This helps grow and maintain the value of your property.
As the value of your property grows, you can leverage your equity to secure financing for another investment. This allows you to expand your portfolio and grow your returns.
Plus, when sold, an A-grade property in a popular location can produce high capital gains for the investor.
What to look for in a good-quality property
What defines an A-grade property? The specifics of each purchase may differ based on location and your overall goal, but there are some key characteristics to keep in mind:
1. Location: There is a wide variety of desirable locations for you to consider, depending on what kind of property and what kinds of tenants you’d like. For example, Domain research shows that inner-city properties in cities like Melbourne and Sydney are very popular and have high asking rental rates.
Established suburbs with good schools and access to public transport will suit young families and professionals. Up-and-coming neighbourhoods with a lot of development planned, particularly transport and other public infrastructure, can also be good investments.
The location of your property may also determine what type of home you buy.
2. Property type: Both units and houses suit investment, depending on your goals. Whichever you choose, it is important to ensure they are in excellent condition in popular neighbourhoods.
3. Demand: A-grade properties often hold unique appeal, whether that is because they are architecturally unique, have historical significance or are located in a high-demand area.
This scarcity keeps demand high, which can ensure your poetry remains attractive both to tenants and potential future buyers.
Finding A-grade properties
Finding A-grade properties requires research and market knowledge. You will have to look for desirable locations, well-maintained properties and the potential for future growth. You also need to have an understanding of the rental market, what is in demand and what the asking rental rates are.
Consider partnering with a buyer’s agent who can provide expert knowledge on the location, rental market and property values in the area.
Looking to buy a quality investment property? As an expert buyer’s agent, A Game Property Advisory can help you secure a quality property at a good price. Get in touch with Jim by calling 0422 446 170 or emailing jim@agameadvisory.com.au.