Hello, everyone.

How are you all doing out there?

I’m Kate Hill bringing you the best and unbiased and honest content on property along with some fantastic hints and tips and area reports.

So stay tuned today to hear why investors sometimes have to get out of their comfort zones.

So it wasn’t really that long ago in the grand scheme of things that investors could take their pick of locations in huge amounts of locations around the country for around the five hundred thousand dollar mark.

But that was then, and this is now courtesy of the stellar price growth that has occurred in a variety of areas near and far.

Now that’s not to say that investors can’t still secure investment grade properties for around half a million dollars.

It’s just that the options are nowhere near as many or as varied as they once were.

Plus, for many potential investors, they actually have the financial ability to perhaps buy in a higher price bracket, but they are stuck in that comfort zone that is no longer fit for purpose or they haven’t bought for a couple of years. And in their minds, they just haven’t moved along with the times.

For many of these would be investors buying perhaps their first or even their second and third properties, increasing their budgets, if possible, to the seven hundred to seven hundred and fifty price zone would make a huge difference to their options as well as potentially to their returns over the long term.

Now that’s because this higher price point will take them out of the mortgage belt as well as first home buyer territory in many markets.

This could be a major regional area.

It could be one of our smaller capital cities.

Regardless, the point I’m trying to make here is that entry level buying can often not be the best investment strategy, especially when you have the ability to manage a higher budget.

Now, of course, I do accept that there are people who are more financially conservative than others, and it’s vital to recognise that prices are higher than they once were, which clearly means that you do need to spend more to secure a strategically selected great investment property that has the best potential and upside for upside growth.

The drivers of capital growth have generally stayed the same for decades now. It’s not rocket science.

With one of the most important factors being the types of properties or the types of property buyers who are attracted to a particular area.

The areas that are most in demand from buyers as well as those that are attracting a new and wealthier type of home buyer have generally been the recipients of some of the best capital growth over the years,

and this is because it is aspirational home buyers who drive up true property prices and not investors or first time purchasers.

Their desire to not only live but also own property in certain suburbs is part of the reason why property prices continue to rise in these areas.

So likewise these locations usually have a constrained supply of properties to purchase which underpins more demand than supply and generally speaking these are also the suburbs that are not at the very affordable end of the scale, depending on a few factors, of course, like geography.

Trying to purchase an affordable property just because it’s affordable has really never been a really wise investment strategy.

There are other factors involved.

We are constantly searching around the nation for these opportunities that feature a variety of investment fundamentals, including the prospects for really good yields and solid capital growth.

And these days, those investors prepare to get out of that comfort zone by adopting that slightly higher budget.

If you can easily manage it and you’ve got access to that finance, you will have access to many more prospects than you would have had otherwise.

So I will keep you posted on all things property from around Australia.

As our year progresses, don’t forget to hit the like and subscribe button if you are enjoying the content and I will see you soon. Bye.

Hello, everyone.

How are you all doing out there?

I’m Kate Hill bringing you the best and unbiased and honest content on property along with some fantastic hints and tips and area reports.

So stay tuned today to hear why investors sometimes have to get out of their comfort zones.

So it wasn’t really that long ago in the grand scheme of things that investors could take their pick of locations in huge amounts of locations around the country for around the five hundred thousand dollar mark.

But that was then, and this is now courtesy of the stellar price growth that has occurred in a variety of areas near and far.

Now that’s not to say that investors can’t still secure investment grade properties for around half a million dollars.

It’s just that the options are nowhere near as many or as varied as they once were.

Plus, for many potential investors, they actually have the financial ability to perhaps buy in a higher price bracket, but they are stuck in that comfort zone that is no longer fit for purpose or they haven’t bought for a couple of years. And in their minds, they just haven’t moved along with the times.

For many of these would be investors buying perhaps their first or even their second and third properties, increasing their budgets, if possible, to the seven hundred to seven hundred and fifty price zone would make a huge difference to their options as well as potentially to their returns over the long term.

Now that’s because this higher price point will take them out of the mortgage belt as well as first home buyer territory in many markets.

This could be a major regional area.

It could be one of our smaller capital cities.

Regardless, the point I’m trying to make here is that entry level buying can often not be the best investment strategy, especially when you have the ability to manage a higher budget.

Now, of course, I do accept that there are people who are more financially conservative than others, and it’s vital to recognise that prices are higher than they once were, which clearly means that you do need to spend more to secure a strategically selected great investment property that has the best potential and upside for upside growth.

The drivers of capital growth have generally stayed the same for decades now. It’s not rocket science.

With one of the most important factors being the types of properties or the types of property buyers who are attracted to a particular area.

The areas that are most in demand from buyers as well as those that are attracting a new and wealthier type of home buyer have generally been the recipients of some of the best capital growth over the years,

and this is because it is aspirational home buyers who drive up true property prices and not investors or first time purchasers.

Their desire to not only live but also own property in certain suburbs is part of the reason why property prices continue to rise in these areas.

So likewise these locations usually have a constrained supply of properties to purchase which underpins more demand than supply and generally speaking these are also the suburbs that are not at the very affordable end of the scale, depending on a few factors, of course, like geography.

Trying to purchase an affordable property just because it’s affordable has really never been a really wise investment strategy.

There are other factors involved.

We are constantly searching around the nation for these opportunities that feature a variety of investment fundamentals, including the prospects for really good yields and solid capital growth.

And these days, those investors prepare to get out of that comfort zone by adopting that slightly higher budget.

If you can easily manage it and you’ve got access to that finance, you will have access to many more prospects than you would have had otherwise.

So I will keep you posted on all things property from around Australia.

As our year progresses, don’t forget to hit the like and subscribe button if you are enjoying the content and I will see you soon. Bye.

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