Wednesday, July 27th, 2011
Understanding the needs of our changing markets will be fundamental to success when it comes to securing properties that will attract above average capital growth in the years ahead according to one of Australia’s leading property experts, Michael Yardney, CEO of Metropole Property Strategists.

Read what Yardney says you need to know to be a successful property investor in today’s market in his latest property market update :

A good investment property is one that will always be in strong demand by owner/occupiers.

Home buyers purchase approximately 70% of the properties on the market and they’re the ones that push property prices up. These popular well located properties are always in strong demand as apposed to the more liquid and volatile inner city high rise blocks, mining town’s or student accommodation properties.

So one of the keys to be successful in property investing is to study the demographics and trends such as -

• The continuing rise in the number of Gen Y's looking for accommodation
• housing affordability becoming an increasing issue for many first home buyers, and changes in our population profile and lifestyle priorities are causing a strong demand for apartment living.
• we’re working longer, increasingly time poor and starting families much later in life. This means proximity to work, transport, entertainment, cafes, shops and beaches is becoming more important than owning a piece of land.
• Apartment living or upsizing in the same location is often maintained by new families to suit their busy lifestyles.
• And don’t forget as baby boomers move into retirement they will also significantly increase the demand for townhouse and apartment living. Low maintenance, secure “lock and leave” living is a priority for these buyers.

As a result demand for near city and inner suburban apartments will grow significantly in the coming years. The supply and demand equation will ensure that rents for these types of properties keeps rising as will their values, making today’s medium density properties, apartments and townhouses, great investments. In addition these properties generally appreciate in value equally, if not more, than houses in our capital cities.

According to a report last year from RP Data, capital city units and apartments only accounted for 25% of all home sales 15 years ago. Today, medium/high density accommodation makes up around 35% of all home sales.

Now that’s an interesting trend, isn’t it?

In our two most densely populated capital cities, RP Data found the proportion of unit sales is significantly larger. For the month of August 2010, Sydney and Melbourne unit sales were at 43% and 37% of all dwelling sales respectively.

So if you’re looking for a great investment property you should seriously consider a well positioned, established apartments in smaller boutique blocks with value add potential through renovations. I’d look for a property with a “twist” - something special or an element of scarcity.

Then hold it as a long-term investment and reap the rewards.

You can view Michael Yardney’s latest video blog where he shares his thoughts on Australian property investment markets in his regular market update.

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Metropole Property Strategists helps Australians become financially free through independent, unbiased property advice.

We help beginning investors buy their first property, experienced investors add to their portfolio and sophisticated investors "manufacture" capital growth by becoming property developers.

Over the years the Multi Award Winning Team at Metropole have bought, sold, financed, developed, advised, negotiated for and project managed hundreds and hundreds of millions of dollars worth of property transactions to create substantial wealth for their clients. And we can do the same for you.

We help our clients create financial independence by building lasting wealth through growing a high-performing property portfolio.
Michael Yardney
P: 0419800900


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