Do investors and First Home Buyers buy the same property?

John Symond, from Aussie, look at first time investors who are generally small investors seeking property which has a good yield, and yields are good at the moment because theres a shortage of supply. They like to be near infrastructure, near the CBD, which means, predominantly, home units.

Whether youre in Brisbane Melbourne, Sydney particularly, inner city - apartments, shortage of supply, high yield and hopefully a high capital gain potential. Not a spike in values over one or two years thats long gone.

Today investors have to look at a property and see that it brings in an acceptable yield, its got good growth asset potential and its even better if you buy a recently built apartment or house where you also can get the depreciation benefits of, say, 2.5% every year. A lot of investors dont know about this but if you can depreciate 100000, 200000 off the purchase price every year for 20 years you can get maybe 4, 5 thousand dollars tax deduction year after year on top of the operating costs your interest holding charges.

So I believe that the shortage of supply of housing, the appeal of low interest rates, a better range of properties because not competing with the FHB segment which really has overheated is going to give investors a much better chance to secure the right property.with everything else thats necessary and Im tipping that investors will start coming back with a flurry, and thats a good thing for the housing market.

I dont believe theyre going to come in en masse, as the FHB did, which will push prices up. I think it will be a more gradual entry which is more healthy and let investors, pick and choose, do their homework and seek great buys, where they havent been able to achieve that over the last 12 months because theyve been competing with a hot market created by FHB which has in many areas forced prices up.

Well, I see those prices coming off, better selection, less competition, still low interest rates and great benefits for investors to get in their provided they do their homework.

Category:

Education

Tags:

• Aussie
• Aussie Mortgage Broking
• Aussie Home Loans
• First Home Owners Grant
• Investors
• Australian Property
• Real Estate
• John Symond

[michaelkirwan93aa]

Interesting take on whether property investors and first home buyers are actually in the same real estate markets.

[nishkov]

@aussiehomeloans. Not all but Most of the property in Australian CBD are owned by Overseas investors. Its very hard for 1st home buyers to buy a unit in most CBD of australia.