Why Townhouses are currently the preferred investment property option?
Throughout Australia’s history the generation of wealth has stemmed from wool, equities & property investment. Property investment has been the foundation for wealth for most of the Austalian population simply because through the act of buying a family home, without necessarily thinking about it, it is one of life’s largest investments.
There are endless terms and acronims thrown around when journalists, commentators or real estate agents talk about property investment. Wealth generation, the accumulation of wealth through property, cash flow positive property, property hot spots, the property clock, timing of the property clock,
Then there are all kinds of due dilligence check lists and macro measure to consider like bank interest rates, rental agent fees, annual body corporate fees and property insurance.
Having said all that property investment is up to each individual. Some people like to buy an investment property close to their family home to check in on it every so often whilst others like to buy in regional areas or mining towns in completely different states and territories.
At the end of the day it comes down to after you have completed your Q&A and due dilligence what are you most comfortable with, what can you afford and peace of mind.
What we can tell you is that at time of writing townhouses lead apartments, house and land packages and established homes as the preferred dwelling type to occupy and rent.
Therefore when considering purchasing an off the plan townhouse for an investment property their are three key themes and considerations;
- Return on investment, will an off the plan townhouse offer you potentially greater capital growth and rental yield when compared to other dwelling types in the same suburb or catchment
- Vacancy rate, which is the measure of supply versus demand, does the number of potential tenants exceed that of avaiilable property
- Affordability, can you afford to purchase, hold and manage the asset
For more information on why townhouses are, at time of writing, the preferred investment property option read our blog 10 reasons why townhouses are becoming more popular than houses and apartments across Melbourne, Brisbane and South East Queensland.