How residential property investment can change the way you think about your wealth

It may seem bland but the phrase residential property investment holds the key to extraordinary wealth creation opportunities over the next 50 years.

You should note that Portfolio has always concentrated clients’ property portfolios in the inner areas of Australia’s leading capital cities. We concentrate our acquisitions where population growth is sustainable in the long term, with easy access to employment and good tenants.

By contrast, we tend to avoid bubbles such as those found in mining and resources states.

Over the last two years Capital property values in Melbourne have risen some 9.3 percent adding to a long period of sustained growth in the Melbourne residential market.

Sydney, which has recently recovered from a prolonged slump in values over the past decade has shown some 15 percent growth in the last year making good rental yields hard but not impossible to acquire. Portfolio is now a strong advocate and buyer in the Brisbane market where population growth is topping 2.2 percent a year and with this city coming from a low base with strong future upside in very specific areas. Call us on 03 96211044 for our most recent Brisbane, Melbourne or Sydney Investment Portfolios.

 

Best forms of residential property investment

Potential investors frequently ask for advice on the choice between houses and apartments or units as the best vehicle for high returns on residential property investment.

The independent Atchison analysis backs up our acquisition and management performance with a strong leaning to houses in Melbourne’s inner east as the standout achievers in recent years.

Today as Australian city populations grow ever bigger, the era of apartment investment is upon us. In Sydney in particular, we have achieved excellent returns on older style character filled apartment blocks. Notable among them are art deco buildings with their premium positions in inner suburbs, more often that not positioned close to the harbour.

 

Regional city options

Some of Australia’s regional cities also offer reasonable property investment prospects. However, you need to be prepared to trade long-term profitability against geographic location. The leading contenders are:

  • Newcastle
  • Geelong
  • Frankston
Capital Return for Whole period
No. Average return
p.a.
Time weighted
average return p.a.
Average
life years
Sydney Central  2 10.5%  10.5%  5.0
Sydney East  19 6.4% 7.1% 11.9
SydneyInner East 67 5.7% 7.5% 9.1
Sydney Inner South 2 2.0% 2.1% 6.3
Sydney Inner West 80 4.5% 5.1% 6.9
Melb Central 40 4.3% 4.3% 12.0
Melb East 9 5.3% 7.2% 14.9
Melb Inner East 51 9.4% 8.9% 12.6
Melb Inner North  299 8.7% 8.8% 11.3
Melb Inner South 67 8.7% 8.7% 11.5
Melb Inner West 108 7.7% 7.6% 7.2
Melb North 7 6.7% 6.5% 17.2
Melb South 78 2.7% 3.7% 6.7
Melb South East 15 3.9% 4.7% 18.2
Geelong 16 0.2% 0.3% 1.5

 

Total Return June 2002 – 2013
No. Average return
p.a.
Time weighted
average return p.a.
Average
life years
Sydney Central  –
Sydney East  16 8.5% 9.2% 7.6
SydneyInner East 57 8.4% 8.6% 5.9
Sydney Inner South 2 6.0% 6.0% 6.3
Sydney Inner West 73 7.7% 8.2% 6.3
Melb Central 24 12.3% 12.1% 8.0
Melb East 5 10.7% 9.8% 8.2
Melb Inner East 41 10.4% 10.1% 8.9
Melb Inner North  242 9.8% 9.6% 8.6
Melb Inner South 49 10.8% 10.6% 8.2
Melb Inner West 88 9.8% 9.8% 7.0
Melb North 7 20.4% 22.5% 7.0
Melb South 67 6.9% 7.9% 4.9
Melb South East 10 19.0% 19.8% 10.0
Geelong 16 4.5% 4.6% 2.4

 

Returns by type of property and state

Find out why the term property investment Melbourne with Portfolio can change your attitude to wealth by ringing us on 03 9621 1044, or download the Atchison report for independent confirmation of your best property investment opportunities.