Investing In Real Estate? Here’s What You Should Know!

If real estate investing sounds enticing, but you are unsure where to begin, there are a few essential things you should know so you can confidently step into this asset class. Investing in property is one of the most popular ways Australians invest their money and prosper over time. In fact, Australians have $10.3 Trillion of their wealth tied up in Residential property (Corelogic, April2024) – dwarfing all other asset classes. In this blog, you will find property investment tips to help you make smart decisions when putting your money into real estate.
You will also learn about the things to look for when searching for an investment property, some of the benefits of investing in property, ways of making money from an investment property and more.

What to look for in an investment property?

When considering what makes a sound property investment, there are some crucial aspects you need to consider. Step one is thinking about where to buy. Location is always an important aspect to consider. What is the proximity to employment precincts, transport hubs, schools, parklands, shopping centres and entertainment? It is things like these that draw or repel would-be tenants and future buyers.
If you do a little extra research, you may find a ‘hidden gem’ property with a location that is up and coming with plenty of new amenities in the works. Properties in such locations have more potential for capital growth.
The type of property you buy for investment is also worth considering, keeping in mind that you may need to view it differently than you would if you were purchasing a home for yourself. The lower the maintenance and repair, the better for you as a landlord. So consider new or recently built properties and a type of dwelling that is easy for your tenants to maintain.

The benefits of investing in property

There are many benefits to investing in property. Property is a physical, real asset that has intrinsic value. The advice given by most industry experts will tell you that such assets should be held for the mid to long term. The immediate benefit of property investment for existing dwellings is the regular source of rental income. In some cases, the passive rental income and tax refunds may be close to (or even enough) to cover your outgoings such as interest and other costs. Over the long term, as the rent increases (and perhaps interest rates decrease), the passive income can supplement your other income streams, such as your employment salary. This is often experienced when holding multiple investment properties at a given time.
Over the longer term if you choose an up-and-coming-area location wisely, there is tremendous potential for capital growth as the market grows and the area becomes ‘discovered’ by more people. Effectively, a well-chosen real estate investment is about researching the growth potential of a property and ‘getting there first’—then watching the demand for that location and type of housing grow. So when it comes time to sell at a strategic time down the track, the property will likely not only hold but increase its value.

Is it worth investing in property?

If you have wondered ‘is it worth investing in property’ and considered the above factors, the answer is a resounding ‘yes’! One of the big reasons real estate investing is so widespread in Australia is tax benefits. You can claim many deductions, including interest, depreciation, management costs such as council rates and property agent fees, as well as maintenance costs for repairs, insurance, gardening and so on. A growing property investment market is driven by strong demand from asset-rich locals and immigrants, decades of undersupply, as well as rapidly rising replacement costs of houses.

How to make money from property?

There are a number of different ways of making money from your investment property. The most common way is to rent it out, typically in incremental periods of 12 months at a time.
Alternatively, depending on the location and laws, you could offer the property as a short-term or holiday rental. If the property is in a holiday destination such as a beachside town, then it can be hired during peak times such as school holidays and festive periods. Here, the property is typically fully furnished and is leased at premium rates. And you have the option to utilise it for your own holidays if you wish.
Another way to make money from property is to take market conditions under consideration and purchase when the market is down, then wait for the next period of market growth. If you have purchased in a strategic growth location, the property is likely to appreciate in value over time. This is especially the case if you have also carried out improvements to add value to your property such as house painting, landscaping and other upgrades to make the property more enticing to future buyers.

Want to learn more about real estate?

The founders of Eynesbury Estate had a big-picture view—a vibrant, master-planned community that is one of a kind. The Resimax Group created not only a stunning estate with beautiful homes but also a place that draws people in with a variety of shared facilities centred on culture and community life. These include an adjoining championship 18-hole golf course, an onsite school, a wedding and events venue, an award-winning restaurant, and winter and summer festivals for people of all ages. There is also a vibrant farmers market, a heritage trail, 228 hectare native forest and more. It is truly a destination in itself.
Located just 40 kilometres from Melbourne’s CBD and between the economic hubs of Melton and Werribee, Eynesbury Estate offers proximity to the city while providing a spacious, welcoming sanctuary to retreat. Suitable for couples, families and retirees, it is an outstanding place to make a savvy real estate investment. There is also a big exciting pipeline of amenities in the works to help increase the value of your Eynesbury Estate home in the mid to long term, including a major town centre and further investment in roads and infrastructure. It ticks so many boxes regarding what to look for in an investment property, it is worth serious consideration.
Want to find out more about investing in real estate at the Eynesbury Estate? Enquire here to start the conversation. Feel free to come and see us for yourself at our on-site Discovery and Sales Centre at 479 Eynesbury Road, Eynesbury. We are open seven days a week between 11 am and 5 pm. This article is for educational purposes only. Always seek independent, professional advice before investing.