A Guide To Property Investment Strategies and Fundamentals
    • 5 September 2022

    A Guide To Property Investment Strategies and Fundamentals

    At Property Club, we encourage our clients to rely on tried-and-true property investment strategies and fundamentals. It is easy to be swayed by trends and personal feelings, but when it comes to property you should rely on population, industry, and infrastructure. Our team at Property Club is in the business of making sure property investors have the right information and the right skills to succeed in this industry. We have collated a list of some core fundamentals you should consider when purchasing property.

    ####The Three Fundamentals of Property Investment Property investment requires you to consider a huge range of factors. The first step to making a good investment is to consider population growth, industry, and infrastructure.

    Population Growth Population growth is a fundamental consideration of property investment as it encourages us to look to the future. We recommend purchasing in a place with consistent and sustainable population growth.

    This reduces your chances of vacancy in the future, which is a property investment risk that all investors must consider. It also does not mean you have to purchase in a place that has a pre-existing large population. Rather, look at the market growth of the area, whether that space has access to public transport, schools, and other amenities. These are the things that draw the population to the area in the future.

    Industry People like to live close to work to ease commute time and stress in their daily life. Therefore, a good strategy for property investment is to invest in places with sustainable employment industries.

    Hospitals, schools, and shopping centres are all types of places that provide consistent employment, creating demand for living spaces. Another good thing to look for is adequate public transport to major business hubs. Even with the growth of hybrid work situations, most people do not want to travel more than half an hour each way for work. Plus, local industry hubs make people feel catered to and like they have everything they need.

    Infrastructure As a property investor, it is your job to understand the relationship between infrastructure and capital growth. If an area or region does not have sufficient infrastructure to support a growing population then the potential of the area will be short-lived.

    This process of providing a community with sufficient infrastructure is lengthy and expensive and a government is unlikely to invest unless there is sufficient need. Do not invest in areas that do not have access to hospitals, schools, public transport, or other resources. These are things that signal a growing and sustainable community.

    You may find examples of this in mining towns, or smaller outcrop communities that are close enough to major cities to not justify further investment. Considering this relationship between infrastructure and capital growth is one of the best property investment strategies you can take on.

    ####Property Investment In SE Queensland South East Queensland (SEQ) remains to be one of the best places to invest in Australia. Over the last few years, SEQ has experienced considerable population growth, growth of industry, and investment in infrastructure.

    Brisbane has become a major industry hub, and with the 2032 Olympics on the horizon, the city is in a mad rush to improve and strengthen its infrastructure. An example of this is the Cross-River Rail which is expected to open in 2025, showing that the city has its eyes towards the future.

    The Gold Coast and the Sunshine Coast both continue to draw investment and population growth due to their desirable locations and access to amenities. Ipswich and Redbank are also experiencing continued growth.

    ####Mining Towns A clear example of bad property investment strategy is investing in mining towns. While mining towns can experience large influxes of people, affordable property, and high rental yields, they are largely unsustainable.

    Mining towns offer little in the way of infrastructure and generally only cater to a singular dominant industry. Property investment is all about thinking about the future, and mining is an unsustainable industry. While there may be work for five to twenty years, if and when this work dries up, you will be left with a property with no population growth, little infrastructure, and no industry.

    ####Property Investment Strategies: Look Forward These fundamental strategies will lead you to making a good property investment that serves you and your family for a lifetime (or longer). Think continuously about the sustainability and future of your property as this will affect population, industry and infrastructure.

    If you are looking for property investment strategies to get you started on your investment journey then get in touch with our team today. Property Club is a group of qualified professionals who want to see you and other property investors succeed, so get in touch today.

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