Where to invest?
From personal experience with investment properties.
The Where, depends on if you want to invest for return returns or for own stay.
If it is for own stay, stay at the 'fringe' of the growth area.
Reason being, the fringe will become the growth area, which means the capital value will increase 'jump' to equal that of the growth area, which means when you are staying there, the price of your family home will be increasing over time. It has been said in a book, there is a '7 years itch' where the price of property doubles itself every 7 years. If you bough property at the FRINGE it will with high degree jump to double itself every 7 years. I have checked with my own properties, YES it has doubled itself every 7 years, YAY!
The beauty of family home is the 'tax advantage' as well.
When you sell it later, it is TAX FREE!
Please consult your tax adviser to reconfirm, I have confirmed with my accountant, they say it is totally TAX FREE MONEY, if I choose to sell. Here is a BIG reason to stay at the fringe for capital growth. Which means, when you decided to go for the well deserved holiday after all your hard work, you get to spend every cent of it without having to give anything to the government!
What if the fringe is still too expensive?
Go to the OUTER FRINGE.
Outer fringe, the growth area is a 'circular ring' growth, which means, people will populate the area like the rings of the tree stump, it will expand and expand in rings, like layers. Go find a fringe ring that you can afford and invest in it, it will take longer but it will definitely be absorbed into the GROWTH area over time.
Property is NOT for speculation.
YES there are those who make a lot from speculation, bought and sold within a few month, but you have not heard of those who bad huge loss within a few months too.
Property is for LONG TERM investment, where it will go up WHEN the location is right, as in location is within your investment budget.
More on investment for rental returns next time.
Licence Real Estate Agent (LREA)
Oracodes Realty Pty Ltd
Licence Real Estate Agent in NSW.