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Paul Modra Executive Manager Member Value and Distribution Police Credit Union
BANKING
Why property might be a good 2022 investment T
his could be the year to invest in property. While house prices remain high across the country, there are still affordable properties which, in the Adelaide market, will continue to grow in value. Our city of churches is currently outshining the rest as the third most liveable city in the world, further increasing the value of any property purchased in the state. You might choose to invest in property for a range of reasons, and whether you are looking for a home of your own or an investment, this could still be the time to get your foot in the door. Police Credit Union is here to help you, as Platinum members, with every step of your property investment journey. From helping you with free property research, to offering you a range of exclusive and free benefits, like $0 package fees, our dedicated Platinum relationship managers are available for all your banking needs.
Additionally, the PropTrack Home Price Index indicated that, over the last year up until April 2022, house prices in Adelaide increased by 24%, making it the second-strongest capital city property market following Brisbane at 26.3%. But with the median value of a house in Adelaide sitting at $548,000, it’s significantly cheaper to purchase a house here than in many of Australia’s bigger cities. Do your research into the suburbs on the rise in 2022. Reported by realstate. com.au, the top 10 suburbs to watch in 2022 are Aldgate, Unley, Malvern, Eden Hills, Belair, Parkside, Burnside, Marino, Bridgewater and Largs Bay. As well as increasing house prices, rental demand across South Australia is at a high. In 2021, median rental prices in Adelaide grew by nearly 11%, which is only $54 per week less than the national average price. Adelaide also has the lowest rental vacancy rates in Australia. Both facts are positive reasons to consider becoming a landlord.
The Adelaide property market is booming
Capital growth
In April this year, according to research from REA Group’s data business PropTrack, Adelaide house prices grew by an impressive 0.34% especially when compared to the national growth rate of 0.13%. This price increase is not limited to just the city, with house prices in regional South Australia rising by 0.27%.
Investing in property now means you can set yourself up to reap the rewards of capital gains in the future. Therefore, doing your research and carefully choosing the location of your investment property is important. To help set yourself up, consider purchasing in suburbs where you know people want to live, where jobs are
available, where there is population growth and access to businesses. For example, according to realestate.com.au, property sales in Croydon and West Croydon tripled in 2021 and the median house price rose by more than 30%. The proximity to the city and Grange beach, along with the busy hospitality scene, has likely increased the suburbs’ desirability. Whether you’re looking in the city or more regional, it’s important to consider other factors that influence property value such as proximity to hospitals, public transport, nearby universities, school catchment zones, flight zones, bush fire zones, new highway access and more.
Enhance your lifestyle by “rentvesting” Purchasing an investment property allows you to take advantage of “rentvesting”. This is a modern and growing trend in which buyers rent a property in an area they want to live in but buy an investment property in a suburb they can afford. This is an idea that challenges traditional home ownership. The perk of rentvesting is that you can live wherever you choose to and use the rental income from your investment property to cover or even pay down your investment mortgage. You’ll need to factor in all the costs associated with a rental property, such as hiring a property manager, any ongoing maintenance, as well as council rates, land taxes and landlord insurance. Consider consulting a registered Australian financial planner or an accredited accountant to receive advice on whether this strategy will work for you.
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