Whether to buy an off-the-plan property is right for them is one of the common questions investors have when looking to invest in properties. Solid research and consideration of your financial circumstances are key aspects, and there are some clear benefits of investing in an off-the-plan property that may appeal to some investors.

If you are among the quickest investors you have the chance to get into the project on the ground floor. This can mean that before building commences, developers commonly offer lower prices to attract the necessary funds to meet their financing agreements. Once building has commenced, prices for these properties may increase. This can be a quick capital gain for the early investor. Another benefit of getting in early is that the range of properties available is the largest and you can choose a property with the best floor plan to appeal to future tenants.

Another appealing attribute of buying off-the-plan property is the tax benefits available. New properties attract the most depreciation and an off-the-plan property is the best way to maximise these tax breaks. Another great benefit of off-the-plan property is once you have paid your deposit – roughly 10 per cent of the property price – you may have up to 18 months’ time or longer before you will have to pay the outstanding amount. This extra time can provide a significant opportunity to save money to lower the amount you need to borrow and reduce loan repayments.

Are you looking for positive cash flow properties but not sure where to start? Silverhall provides guidance and strategies for property investors. Book a free consultation online or contact them today on 1300 662 143.

Check out the article from the Domain in Saturday’s Sydney Morning Herald. Kirsty Wilson, a Silverhall client talks favorably about Silverhall’s recommended investment in Townsville.

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

The latest census figures show rents have been climbing steeply around the country, particularly in the most affordable areas. This has upturned the traditional property investment mantra of buying close to the city, and experts are advising investors to seek homes further afield.

Cameron Anderson of Silverhall says, "We have found the West and South West areas have continued to enjoy rental growth over the last 3 years. We have noticed a significant increase in demand for properties that are benefiting from the M7”.

While homes in the most desirable areas climbed the fastest in the boom years, they have fallen the furthest since the financial crisis.

RP Data head of research Tim Lawless warns against buying too far from the CBD in fringe areas which don't yet have infrastructure installed. But as long as a suburb has good public transport and shops, investors should not have much trouble finding a tenant, he says.

Lawless expects Melbourne is likely to see the least rental growth, with relatively high vacancy rates and a lot of new housing in the next year.

Ray White Group chairman Brian White says relatively affordable homes in inner-city areas have good rental prospects, with strong demand from students and young professionals. "This is where people want to be, they're getting better salaries and they can afford to pay better rent" White says.

But he warns investors to "temper your enthusiasm with reality" when it comes to booming resource towns such as Gladstone in Queensland, where rental growth had not always been as strong as he expected.

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