There are dos and don’ts in every major investment area in the country. Real estate in particular is generally considered a safe investment by many but real estate is also suffering from the bubble phenomenon. Especially in the commercial hubs of the world like UAE, Singapore and the USA. Property prices had nosedived after the recent recession and still continue to be quite erratic.

Australia, however didn’t experience the downfall and even in the tough times, property became stagnant rather than losing its value and continues to rise. This trend indicates that property is still a safe investment in this part of the world but that doesn’t mean you go off making bad deals hoping they would eventually pay off. If you want to make a profit, you will need to invest in the right areas.

The right place to invest in real estate?
First of all, we advise you to not invest in inner city areas of Perth, Melbourne or Brisbane. This is because of an excessive development in the areas. This oversupply results in a downward trend in rent graph, and an eventual drop in property price. In recent months, rents have decreased in the inner areas of Perth, Melbourne and Brisbane. We strongly recommend that you invest in the  suburbs and other surrounding areas of these cities.

Which state has most active investors?
Investors from the east coast state New South Wales dominate the real estate business by a significant margin. This is a result of the boom in Sydney properties created by small businesses. Australian Bureau of Statistics published a report which said that 48 percent of investor loans are taken by investors from New South Wales. According to this report NSW is followed by neighboring state Victoria, with a 23.9 percent. The 71.9 percent investor loans from two east coast states clearly indicate rising real estate opportunities.