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  • Buy an investment property and generate a fixed income using your super

    An SMSF or a self managed super fund allows Australians with superannuation the opportunity to purchase one or multiple investment properties.When buying a house using super, you cannot intend to live in that property and needs to be only for investment purposes.

    A super fund can have between 1 to 4 members and they can buy an investment property and generate fixed income. Each member is responsible for their own investment decisions.

    This could still include investing in shares. However, many people now include housing in their retirement and investment plans.

    The process of setting up a SMSF may be complex. You should seek professional financial advice to understand your responsibilities.

    An SMSF offers significant advantages, including the possibility to invest in property directly. A fund can purchase residential or business property. A fund can generally borrow a portion of the property’s actual value. Due to the nature law structures, there are rules that govern this activity.

    Visit us: https://www.starinvestment.com.au/

  • How to find a perfect property hotspot to invest in

    If you are thinking of buying an investment property,  there are multiple factors in identifying a proper location to invest in.

    A recent study from major banks in Australia have found that the most important factor in deciding where someone will live is their proximity to work. Capital growth is more likely for properties in areas with high-quality, long-term employment.

    Important to remember that we mean long term employment options and not an immediate boom in employment. What we mean is that Perth in WA saw rapid growth in employment due to increased activity in the mining sector. This led to a significant increase in property demand in that location and the median house price increased by more than twice in the early 2000’s.

    However, the resource sector in Western Australia has seen a decline in its value over the years and this has contributed to a decrease in population growth and a fall in median house prices. It is crucial to make sure that your property investments are in areas with only long term potential. This should not be confused for a boom in employment. 

    TRANSPORT INFRASTRUCTURE IS AVAILABLE

    Improved transport infrastructure can have a positive impact on property prices. Transport infrastructure improvements include passenger and freight trains, freeways, bridges and tunnels, as well as roads and freeways.

    These improvements make it much easier to travel to airports or other business areas. This makes it easier to commute and more attractive to live in. Infrastructure development also has other benefits, such as improved safety and aesthetics.

    Property prices are likely to rise during infrastructure projects.

    • First public announcement regarding the transport infrastructure project.
    • Construction work begins.
    • Once the project is completed.

    Information about the most recent updates to transport infrastructure can be found from both state and local governments as well as relevant media outlets like local newspapers.

    LIFESTYLE & AMINITIES

    Property values can be boosted by lifestyle amenities and other features. It is a great place to buy a home. It’s close to schools, shops, public transport, restaurants and sporting centres. It is a very popular place to live.

    Parkland is an element of nature. Parkland is close to water, such lakes, rivers and beaches. This has always attracted higher property prices. A major renovation to a specific area could be a great investment.

    Is there a school or college in the area? How close is the hospital?

    The demand for housing in an area can be affected by the presence of schools and hospitals. Both can create jobs, and people love to commute to work from their local area.

    The zone where a child lives determines the government school that they can attend. A quality school will make your area more affordable and less expensive. Patients can reach hospitals quickly if they need to in an emergency. Hospitals are usually located near excellent transportation infrastructure.

    REGIONAL AUSTRALIA BUYERS

    Recent sales show that more Australians are prepared to move to rural areas. This is provided the area has scenic views, is surrounded by parks and trees, and offers the possibility of retiring in peace.

    Many Australians prefer to live in rural areas and enjoy a more relaxed lifestyle in lakeside communities. This trend has been more common since the Covid-19 pandemic.
    This has led to a surge in tourism and real-estate development along the coast. Beautiful inland cities are also within a short distance of Melbourne.

    CAPITAL GROWTH

    Capital growth is what most people consider the most important factor in deciding where to live. Strong long-term capital growth is usually a sign of success. Renting a property isn’t always more profitable than buying a large land block that has high capital growth. Investing capital is the best way to maximize your property market profits. This helps in wealth creation. It is generally considered an ideal investment opportunity if you can see capital growth over the long-term.

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  • What impact would an increase in interest rates have on property prices across Australia?

    A select few property experts have been constantly predicting how property prices could drop for the next few years consistently after 2 consecutive interest rate hikes in last few months by the RBA.

    However, after doing some research around it, our personal opinion is quite different and we believe that house prices will continue to increase despite rising interest rates. Here is a look at why we do believe this to be the case

     Australians who recently bought a house have a mortgage that must be repaid with interest. We all know that there was an increase in interest rates in May 2022. The Reserve Bank could soon raise interest rates to lower inflation. It is very difficult to control inflation once it has established itself. Economists worry that rising interest rates could make housing more expensive and reduce buyer demand, which will in turn lead to lower prices.

    It is logical that rising borrowing costs will result in lower buyer demand and, consequently, prices will fall. This theory is hard to prove because interest rates have consistently fallen since the 1990’s when the standard variable rate on a home loan was way more than what is right now.

    As we all know quite well,  people make more money these days and now that Australia is open after COVID , there is going to be more people moving in from overseas to settle in Australia.

    So, demand in the property market is not going to cool off anytime soon. With demand , there would be a surge in prices with the housing industry. This is exactly why construction workers seem to be highly paid and highly sought after. If you are still concerned about rising costs and interest rates and you still have savings from your super that you would like to invest. Consider investing with a property developer who would offer you a high return on your investment. Make sure you do research before investing with property development. Look for an investment opportunity from Australian property developers involved in the development and operation of residential projects, commercial and industrial projects, and shopping centers. These development projects if in the right location headed by the right people and if operated and executed properly is where you will see high potential in growth of the actual project. So, doing your study is the key to investing in such developments.

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