We live in a country with vast expanses of space, yet we cling to the
major coastal cities for dear life and treat the inner-ring suburbs of Sydney,
Melbourne and Brisbane like hallowed turf that we can only hope to be worthy of
residing on.
Property taps into some of our strongest needs and desires – security,
safety, prestige, status,a sense of success, something to leave behind
for our children.
We all need somewhere to live, or somewhere to operate a business, and as
with any asset, when demand outstrips supply, prices go up – as we’ve clearly
seen over the past few months.
Having said this, there are a number of key factors that will always
play a part in the value of property, in the most buoyant or subdued of
markets.
So let’s take a look at why some properties are more valuable than
others…
Solid returns
on investment
There’s no doubt that increased investor demand for properties in prime
locations is part of what has been helping to drive prices in many locations
around Australia.
And with minimal returns from many other asset classes, more investors
are turning their mind to property with interest rates being at historic lows.
The bottom
line:
Like most things in life – supply and demand for a property determine
its value.
And in the future, Australia’s population growth, our increasing wealth as a
nation, and our desire to live in a select number of locations in our big
capital cities will underpin the future value of well-located properties.
RealRenta has all the tools that a property manager
has, but at over ¼ the cost of a property manager.
Join now and the cost is less than a cup of coffee a
week to manage your rental property
RealRenta also has a free vision, so why not check it
out
Jason Gwerder
Thursday, 20 May 2021
