Property investment is fast becoming the smart option for many of us, but what does the market outlook look like in Tarneit?
Whether you’re starting out or growing your portfolio, the groundwork is still the same.
It pays to look at all the factors driving an investment opportunity: location, rental income, capital growth and infrastructure such as shops and schools in Tarneit just to name a few.
As a strong up-and-comer, Tarneit is hard to beat when it comes to value.
Read on to learn everything you need to know about the potential of property investment at The Grove, and take the first step on this exciting investment opportunity
The big picture
Melbourne’s western region has historically grown at a slower rate than other parts of metropolitan Melbourne, but there are signs that that may be beginning to change, with new interest driving growth.
In fact, the west is currently growing at 12%, that’s above the 10% population growth of metropolitan regions.
This is because property and infrastructure development in the west is less constrained, providing more opportunities for expansions that are being supported by western projects aimed at creating communities and jobs.
Early investors in suburbs like Tarneit are already beginning to see some capital gain on investments because of rising interest in the area.
Owners in Tarneit have every reason to be happy about their choice to make this up and coming suburb their home.
Over the past five-year period a steady increase in Tarneit property prices means that owners in the area have made an equivalent capital gain of 17.46% on their investment.
Does this mean that the opportunity has passed for those looking at land for sale in Tarneit?
Don’t be so sure.
Although the growth over the five-year period was high, capital gains in the last 12 months is slightly lower compared to peers.
This means that if you buy land in Tarneit now, there could still be room for higher growth.
But returns in property investment are about more than just capital growth.
So how does the Tarneit rental market stack up for those who want to take advantage of the new land release in Tarneit and become a landlord?
Renting is not only a great way to cover the mortgage on your investment, but can also help you get some early returns when you pick the right property in the right suburb.
Average weekly rents on property listings in Tarneit have reached the $390 mark.
This is fantastic news for anyone looking to buy in The Grove, as it reflects an increase in returns when you take the current median price into account.
Of course when looking at buying a rental property, the type of home you buy will make a big difference to your returns.
When you buy a turnkey house and land package in The Grove, you can verify the reputation of your builder more easily, and be sure of a high standard of quality.
Plus, with clear costs packaged upfront and plenty of features included as standard, your tenants can simply move straight in!
Tip: as the Tarneit demographic leans toward families, ease of moving in can be a huge advantage for your rental property.
Taxes and concessions
It’s important to know that if you’re buying a property as an investment, you won’t be eligible to claim the First Home Buyers Grant.
Of course, this doesn’t mean that first home buyers can’t think of their new home as a great investment.
So long as you meet the initial eligibility criteria, such as calling a property home for the first 12 months of ownership, these tax concessions can still provide a subsidy that helps you add the first property to your portfolio.
Another tax consideration for any would-be investors is the fact that any rental income counts as income on your tax return at the end of the year.
This is where negative gearing comes in handy, which allows you to count any interest and maintenance cost as a deduction.
Looking to buy land in Tarneit as an investment now?
Right now the HomeBuilders grant provides $25,000 for anyone who signs a building contract before 31 December 2020 and meets the eligibility criteria.
This is a huge opportunity to get the headstart you need on your property investment.
When you take all of these factors into account, you can see there are many reasons to consider Tarneit when looking for an investment property.
With a wide range of living options at The Grove, there has never been a better time to start your property portfolio.