Meet the expert, Peter Howman:
Peter Howman is the Managing Director of Defence Housing Australia (DHA). He was appointed in 2013 and since then has been instrumental in ushering DHA into a new era, exposing the organisation to new financial markets and developing innovative housing solutions for investors.
Advice from Peter Howman on finding an affordable investment property in Australia:
If you?re keen to get your foot onto the first rung of the investment property ladder, here is my advice…
- Don?t be deterred by the fact that the median house price in Sydney has topped $1 million, as reported this week in the Domain House Price Report. There are real investment property opportunities in growth corridors and regional areas of Australia, with more affordable price tags.
- Choose an area that features: a thriving diverse economy, good employment opportunities and potential infrastructure projects. Infrastructure schemes boost local communities, stimulate the economy and attract other piggy-back business and retail opportunities. For example, Wirraway is a new DHA residential development that?s currently under construction. It?s situated on the north-eastern fringe of Thornton, in the Lower Hunter Valley and is a short drive to local urban shopping centres and Newcastle?s shops, cafes and restaurants.
- Make sure that the local economy?s eggs aren?t all in the one basket (like mining or agriculture, for instance). Look for a low vacancy rate, strong cash flow and closeness to public transport and amenities.
- Choose a property that appeals to tenants, future investors and owner-occupiers. Investors should also check local auction clearance rates, rental vacancy rates and rental yields. These will help to reveal if your chosen area stacks up to others.
- Consider how your investment property will perform over the long term. Many investors are realising the benefits of holding onto their properties for the long term. DHA offers investment properties in growth corridors with long-term lease-back opportunities of up to 12 years. This is reassuring as the rent accrues daily and paid monthly in advance, directly into your bank account. Best of all, rent is even paid if the property isn?t occupied.
- Be in a position to inspect a property and have your finances pre-approved, so that you don?t miss out on an investment property opportunity.
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