One of the key factors to successful property investment strategiesis being able to look beyond the local conditions and recognise the larger forces – both social and economic – that are impacting on the property market, such as population and growth.

With the so much information to absorb or decide what is right, it may seem difficult to know where to invest next. However, with expert advice from experienced professionals who understand local conditions as well as larger trends, you can position yourself to increase your wealth with sound property investments.

The most basic principle of business, of any kind, is supply and demand. This is true of property and is a useful tool to apply when considering your next investment property. Australia’s population is growing steadily, in fact at rate faster than homes can be built in certain areas – through both births and immigration. This can provide opportunities for investors as it creates demand for new houses to be built to meet the needs of these new arrivals. The majority of the population growth has been in the outer suburbs of the capital cities and this can mean potential rental incomes and capital growth for investors holding property in these regions. In short, this population growth can be great news for investment property owners.

Property Investment Strategies Sydney

Want to learn more about building a smart investment portfolio? Silverhall runs informative investment property seminars in Sydney. Find out more online or contact their team of professionals on 1300 662 143.

Noteworthy housing Census results, according to RP Data:

• While the number of occupied dwellings has grown by 7.7% over the past five years it has not matched the 8.3% increase in population
• 10.7% of Australia’s houses are unoccupied compared to 10.4% at the time of the 2006 Census
• Growth in housing loan repayments over the past five years has outpaced the growth in individual, family and household incomes
• Growth in weekly rents over the past five years has outpaced growth in housing loan repayments

These results continue to confirm Silverhall’s position there is an undersupply of housing. This is pushing up rents making it great for landlords. The Key though is investing in the right region.

The key investment criterion in the post-GFC world is certainly income. And it is why some buyers are attracted to housing.

Yields are higher than they have been for some time; they can certainly go higher; and in the long term house prices are more likely to rise than fall.

As cash deposit rates retreat, property yields look even better.

Two recent surveys by APM and NAB, point to a pause in rental growth. APM's Wilson says the underlying demand will lead to further upward pressure.

The ANZ's lead house price analyst, Paul Braddick, says house prices will probably stop falling in the next six months in Sydney and Perth "if they haven't already".

If Braddick sounds a touch cautious in that prediction, he is utterly confident about rents.

Investors in Sydney and Perth can expect rents to soar in the next few years due to low vacancy rates.

"Unless policy authorities start to do something about the under-supply of housing, I can't see how we can't have a long-term acceleration in rents," Braddick says. "As an investor you have very little chance of having a vacant dwelling and enormous upside in terms of existing rents."

Parts of this article came from the Weekend Australian Financial Review. It has been amended by Silverhall for the purpose of this blog post

Silverhall provides experienced guidance and strategies for property investors. Book a free investment consultation online or call 1300 662 143

Residential property is back on the map. It may not deliver right away but it will deliver - and it offers the certainty of rental income in shaky times.

Australia's 1.5 million housing landlords experienced a rent boom through the financial crisis.

Across the nation, rents rose 50 per cent between the 2006 census and that of June 2011.

The surge has helped housing to become one of the best-performing asset classes of recent years. It is also changing the way investors consider houses and apartments. More weight is being given to income and less to prospective capital growth.

Peter Chittenden, managing director of residential property at Colliers International, an agency that sells around 4500 new apartments a year, has noted a renewed emphasis among prospective buyers on income.

"Buyers are asking what they can rent the property for, what is the return and what is the yield," he says. "Interest rates are low. Investors are saying, 'If I can get a good yield I can get some equity in my investment'."

Chittenden says the old rule of thumb is returning. If a property rents for $500 a week, it will sell for $500,000. In essence the yield is 5 per cent before costs.

In Maitland, Fletcher, Campbelltown and Rooty Hill of NSW, rents on Silverhall properties have grown strongly and house prices have been increasing, gross yields are now more than 6 per cent. (added by Silverhall)

At the other end of the scale, in the inner south-east of Melbourne, gross yields are less than 4 per cent, which reflects weakening rentals and the tail of the housing boom.

Of course the vast majority of housing investors are still locked into the old paradigm.

On the latest numbers, from the Australian Taxation Office for 2009-10, more than 1.1 million investors have negative-geared properties.

The strong price growth through the 2000s encouraged negative gearing. In 10 years the proportion of negative-geared investors rose from 50 per cent to 66 per cent.

The past year, however, has been hard on highly geared investors. Equity was lost as prices fell. However, this has occurred in areas where prices have fallen, a factor normally associated with a fall in demand or an oversupply.

But one thing has remained constant - the rent has always been in the account. In tight housing markets, even a week without rent is unlikely. As old tenants vacate, new tenants move in.

Silverhall provides experienced guidance and strategies for property investors. Book a free investment consultation online or call 1300 662 143 today!

Parts of the following article came from the Weekend Australian Financial Review. It has been amended by Silverhall for the purpose of this blog post.