As the year draws to a close we want to thank you for your continued support this year.

Wishing you a safe and happy holidays.

The Silverhall offices will be closed from the 16th December until Monday 9th January. Our Private Client Consultants and Client Services team will be available throughout the break for any inquiries you may having during this time.

Merry Christmas & a Happy New Year!

Cameron Anderson

CEO

It's a good time to buy property. The seminars this season have generated a lot of property sales so it's clear nobody wants to miss out.
Silverhall is a research based property business and we explain what locations have a high rental demand giving you positive cashflow.

Thank you to everyone who came to our Sydney CBD evening and Gosford seminar.  It's fantastic to see so many of our clients and business partners come back to our seminars every year.

A common question investors have when creating property investment strategies is whether to buy an existing property or build a new property. The right or wrong answer will be decided by the research behind the property combined with your individual circumstances.  Remember that it is prudent to consult with experts who can provide advice and assistance to your specific circumstances.

The Benefits Of Existing Properties Or Off The Plan

Investors that choose to buy an existing or off the plan property typically are not experienced or lack the knowledge to buy land and construct a house.  Investors also find it fits their portfolio to purchase a property off the plan whilst they are constructing another investment property allowing them to add 2 properties to their portfolio rather than 1.

Why Building Might Be Right For You

There are upsides to building new properties that can prove enticing to investors. An advantage of a new building is that it is new and, with modern floor plans, more appealing to new tenants with potentially higher rents. They also need less maintenance than older buildings which can prove costly. Finally, there may be significant tax deductions available with new buildings and the potential for early investors into new developments to make significant capital growth.

Whether you choose to invest in an existing property or building a new one, the right investment strategy is essential. It is worthwhile seeking the help of a property advisory professional to find out more about your options. Contact Silverhall on 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.