PROPERTY investment has again proven to be the safest and most effective way of building personal wealth over the long term with the collective value of homes in Australia more than doubling during the past 10 years to over $10 trillion.
According to Kevin Young, President of Property Club, Australia’s largest independent property group, the overall value of homes in Australia surged by $5.4 trillion during the last decade.
“Every State in Australia shared in this massive increase in housing wealth with NSW and Tasmania recording the highest collective rate of wealth creation followed by Queensland, Victoria, South Australia and Western Australia,” he said.
“Thousands of millionaires have been created throughout Australia during the last decade thanks to their ownership of property.
“They have succeeded in becoming property millionaires by purchasing the best property at the right time in right location with the right finance.
“The reality is many first- time investors give up after buying their first investment property for example because they have bought it in the wrong location and the wrong type of property.
- Educate yourself and do plenty of research.
- The cheapest is not always the best. Focus on locations that deliver high rates of capital growth over the long term.
- Keep an open mind about purchasing dwellings outside your current address.
- Check high capital growth areas that have fallen the most during the past year.
- Pick suburbs in these areas with a high number of properties for sale that are in your target price range.
- Find a street in a target suburb which has a number of properties listed for sale.
- Speak to the selling agent to determine if the owner is a motivated.
- Get an independent valuation of the property. If the valuation comes in below the listed price it will give you greater negotiation strength with the vendor.
- Try to have pre-approval finance.
- Set a deadline for the acceptance of your offer.