This article is from the Australian Property Journal archive
2023 is shaping up as a good time to invest as the market continues to favour the buyer following interest rate hikes.
A survey by Aus Property Professionals revealed the thoughts and attitudes of respondents towards investing in the current market as people weigh up their options.
New South Wales featured in the top three of best states to invest and worst states to invest across the respondents, showing the conflicting perception people have for properties in the state.
Queensland and Victoria make up the other two states considered best to invest while Northern Territory and Tasmania are listed 1st and 3rd in worst states to invest.
The interest rate hikes have led to lower demand – and ultimately creating lower prices in most places. As a result, it’s become a tempting time to look into available properties for investors who are chasing better value for money while also remaining wary of prices growing again at some stage.
While some people like to invest in a separate state to where they live, as a potential holiday destination or future retirement location – the survey shows that people would generally prefer to buy in their own state.
Director of Aus Property Professionals and property expert Lloyd Edge says that there is a lot of confusion in the property market with misleading information causing problems.
“Each year, there’s over 500,000 properties for sale in Australia, yet less than 5% are actually investment worthy. There’s so much contradictory information out there about property, so no wonder people are feeling conflicted about the real estate market right now,” Edge says.
Edge defends NSW, saying that it remains a good investment decision based on how many options it has in different areas of the state.
“For example, some people might think that New South Wales is a bad investment decision, because they heard Sydney prices are going down. However New South Wales has multiple markets, metro and regional, and many regional areas are still experiencing growth and providing higher rental returns,” he said.
“Forster on the Mid-north Coast, has continued to experience growth in 2022 with an 18.8% increase on the median house price, following 20.4% in 2021. This is a popular coastal town with beautiful beaches and an affordable lifestyle, still attracting lots of buyer interest and positive market activity. Gorokan on the New South Wales Central Coast, has also continued to enjoy growth in 2022, reporting 10.8% on the median house price, after 27.5% in 2021.”
Lloyd Edge has also identified key tips as to what property investors should look for and keep in mind in 2023.
- Target areas with strong economic growth, high demand for rental properties and good infrastructure
- Identify the age and income of the local population of an area to determine a trend and whether they’re likely to pay high rent or buy a property.
- Look for opportunities where you can manufacture equity (renovation or subdivision; increase the property’s value)
- Timing in the market. It’s better to spend time in the market rather than attempt to reach perfect timing in the market and miss an opportunity altogether.
- Research is key to assess all options in the local market and compares sales and rental prices and demographics to set apart properties and realise the potential of each one.
