Serious money is waiting to be made in property investment but most Australians don’t want to know about it.


RP Data has revealed property values and weekly rents are primed to grow in many regions, but studies show people are reluctant to invest in property over shares and savings accounts.

A Ray White Projects survey found 11 per cent of 1500 adults owned an investment property, while only 3 per cent owned two or more.

“It’s hard to believe 86 per cent of Australian adults do not have an investment property,” said Dan White, Ray White Projects director.

“It contradicts the commonly held perception that bricks and mortar are one of the safest forms of future planning.”

The survey showed 59 per cent of people wanted to see an increase in property prices or greater market stability before investing.

“No one knows exactly how or when a property market will change direction,” Mr White said. “When it does, people are surer about the investment. They might not make as much as if they bought at the bottom, but they won’t lose money.”

Some of the best investment opportunities can be found in Sydney’s western suburbs, where affordable properties attract high rental returns, due to a low vacancy rate.

“Areas like Liverpool, Campbelltown, Blacktown and Penrith are fantastic,” said Nathan Birch, investor and founder of buyer’s agency B Invested.

“There’s a lot of infrastructure going in: the M4 and M7 can get you to the city or airport in 45 minutes and it’s currently cheaper to buy than rent.”

According to RP Data figures, houses in Blacktown Council’s area can be bought for just over $200,000 and have rental yields of up to 7 per cent — the highest in NSW.

“Capital gains are the best in affordable areas,” Mr Birch said.

“A $1 million property in Mosman will not double in value any time soon, but if you invested $1 million in multiple Mt Druitt properties, the values would double much quicker.”

Adrian Allen and partner Lisa O’Donnell have three investment properties in Sydney’s west. “Our Bidwill property cost $181,000,” Mr Allen said. “It then rented for $330 a week, which is a 9 per cent yield. It was positive cash flow straight away.”