Property owners may consider utilising current mortgage rates in order to make a property investment in Australia. The latest RP Data-Rismark April Hedonic Home Value Index Results outline particular areas that buyers may wish to pay attention to when looking to grow their wealth.
Darwin was highlighted as the "best performing capital city", according to the report, which was released on May 1.
Strong figures for Darwin
The Northern Territory capital experienced a 5.1 per cent quarterly growth in dwelling values to March 2014, which is certainly promising for property investors in the area.
Darwin came out number one for the strongest rental yields, according to the RP Data-Rismark findings, with houses sweeping in with an average 5.8 per cent gross rental yields.
Units in Darwin experienced even stronger yields, with a figure of 6.1 per cent.
Those looking to purchase property would be wise to consider potential rental yields, among other factors.
Looking at affordability
Current homeowners looking to foray into the property investment market may also consider Hobart.
The city has been named the most affordable city, with dwelling prices averaged $340,000.
While this may set the scene for home buying, it could also enable first-time investors to obtain a slice of the property pie at an affordable price.
The Reserve Bank of Australia has indicated that interest rates will remain stable for some time, which is promising for those looking to secure finance for an investment property purchase.
It's essential to focus on offering the right kind of property to tenants. For instance, buying in an area that's located next to local bus or train routes is often a plus.
Tenants may also want to have ample backyard space, particularly if they have young children. By contrast, professional couples who work a lot or elderly couples may prefer a low-maintenance property.
With plenty of potential buying opportunities on offer, now may be the time to invest in the Australian property market.