Owning an investment property is all about strategy and having plans in place – and much like buying any other property, it’s about time in the market and not timing the market. Prices in the Wyndham City region haven’t fallen significantly in the last year, however, it is still a great opportunity for investors looking in the outer Melbourne market.
Why Wyndham?
For investors who haven’t spent a lot of time in the Wyndham City region, it may be an area you’ve heard about but don’t know a lot about when it comes to buying a rental property. It is a great area for families, particularly for those with young children. It’s also an ideal region for those who want a more quiet lifestyle but still have the ability to work in the city.
For families, Wyndham City is a family-friendly place with plenty of parks, facilities and good schools. It is also only a 30-40km drive to Melbourne’s CBD, or around an hour on the Werribee train line. Then there’s the beach, and the zoo, and Geelong is within easy reach for weekends.
Housing-wise, there are some great family-sized homes in established areas, older homes on bigger blocks of land, modern houses, and stylish townhouses. Even better is that the area is still extremely affordable to buy in – which may very well suit your investment strategy.
Getting in the market
One of the biggest advantages to buying in the suburbs like Point Cook, Tarneit, Truganina, Wyndham Vale and Sanctuary Lakes is the wide range of properties available at a range of budget levels.
If your budget is smaller, you can still pick up an older home that may need some basic renovations or a smaller newer home that’s ready to rent out. For those with a larger budget, you’ll find plenty of opportunities across Wyndham City.
There are always people who will tell you that house prices will crash, but buying an investment property usually isn’t for the short term. Michael Yardney believes that the Melbourne market has moved from a peak rate of growth to a more sustainable rate of growth and that there is still plenty of life left in the market.
Investment strategies
If you are a first time investor, setting your investment strategy in place early on is one of the most important things you can do. There are a few strategies that you can look at that tend to work well for investors:
- Buy and hold – purchase a property with the ultimate goal of hanging onto it long enough to generate good capital growth. It is one of the most straightforward strategies but does require a long term commitment – you are usually looking at a 7 to 10 year minimum to get that good capital growth.
- Gearing – there are two ways an investment property can be run – negatively geared or positively geared. This strategy is best spoken about with your accountant so you can understand the tax implications.
- Renovate and hold – this works well for those who are a little handy or have contacts who can help them out with renovations. Doing renovations such as new kitchens, bathrooms and opening up walls to bring more light in can make an overall difference in rental price and value of the property. But you need to be sure you don’t overcapitalise.
There are some other strategies you can employ including flipping properties and buying and subdividing but these tend to take up a lot more finances and may not be great options for beginners looking to enter the investment market. As always, do your research.
Talk to us
If you are interested in purchasing an investment property in Wyndham City and surrounds, come and speak to the friendly team at Established Property. With a number of properties for sale, and an experienced rental team, we can help you buy the right property for your budget and your investment strategy.