With prices correcting in some capital city markets, together with historic low-interest rates and high occupancy levels, there’s never been a better time to consider investing in a quality, well-located and positively-geared property or increasing the size of your portfolio.
So significant are these changes, the affordability of buying, owning and maintaining an investment property is arguably at a seven-year high.
Better still, we can prove it. Let’s assume we purchased an investment property in 2012 and compare its performance if we invested today. To ensure our comparison is as thorough as possible we have included the initial buying costs such as the purchase price of the property, loan fees and transfer costs such as stamp duty. We’ve also factored in ongoing expenses such as property management fees, insurance costs, maintenance costs, rates, and land tax.
We found it would be 37% cheaper to buy a property today than in 2012. The property also has the potential to deliver an increased annualised profit of 278.63%. Understanding this in terms of its ‘Return on Investment’ (ROI) if we purchased the fictitious property in 2012 it would have realised a return of -6.24% or a $4,075.36 annualised loss. However, the same property purchased today would achieve an ROI of 27.88% or an $11,355.04 annualised profit excluding any potential growth.
While considered the nirvana of property investment a positively geared investment property is an opportunity that the current market is offering new and seasoned property investors.
To find out more about accessing finance to take advantage of current market conditions and the opportunities they present, book an appointment with Our Broker today.