Whilst it’s nice to know that on average, Australians are living longer and enjoying a healthier lifestyle, our retirement years now span between 15-25 years, a significant increase from a mere 3 – 5 years back in the 1960s!
However, did you know that more than 90% of Australians retire on less than $400 per week, which doesn’t quite equate to living the great Australian dream after all.
We are finding that Australians more, and more are becoming proactive when it comes to funding their retirement. There has been an increase in investments and of particular note is an increase in property as an investment.
There are several ways property investments can make you money, mainly by the growth in the value (long term capital growth), and the rental income generated from the investment.
There are a number of factors you need to consider when taking into account property investment. They are:
- Whether to invest in metropolitan cities or non metropolitan cities
- Rental Yield
- Return on investment
- Purchase price
- Capital growth
- Negatively or positively geared
- Amount of money you need to retire on
Each of these elements form a comprehensive picture of what shape an investment portfolio should look like for your specific situation.
There is a long-term myth that investing in metropolitan cities is superior than investing in non metropolitan cities. If we were to do a generalised comparison between metropolitan cities and non metropolitan cities, based on our 20+ years researching and purchasing investment properties, it would look something like:
- Metropolitan Cities Non Metropolitan Cities
- Negative cash flow Positive cash flow
- Higher purchase prices Lower purchase prices
- Lower rental yields Higher rental yields
If you were looking to invest in a typical metropolitan city the likelihood of negative cash flow is almost inevitable and rental yield will be much lower due to significantly higher purchase prices, and it will remain this way for much longer.
In a well-researched non metropolitan city, from the beginning, you will receive at a strong rental yield and positive cash flow, often from day one.
Invest Hibbards prides ourselves on the research we undertake for any location. However, our research extends beyond the region, city and suburb that we invest in. We look deeper and assess variables like the percentage of owner occupiers in the suburb/estate, and other factors such as planning, public infrastructure and more. These factors all contribute to a favourable landlord experience and produce best performance outcomes for your investment property.
Our comprehensive process includes:
- Crunching the numbers
- Indepth analysis
- Close up property inspection
- Property profiling
If you are looking for an opportunity to understand where you are today, where you want to be, and to have a plan to get there, then consider our 14-Day Insights Program.
Get in touch at firstname.lastname@example.org or call 1300 958 410 to start your investment journey on the right foot.