What are the Best Types of Properties to Invest in 2023 Onwards?
The post-pandemic world has presented both challenges and opportunities for property investors all over the world. Find out which ones are ripe for the picking.
The property market in Australia has experienced significant transformations.
This has opened up exciting opportunities for property investors and developers alike. In light of economic uncertainties, stakeholders have been prompted to reassess their strategies, with those embracing innovative approaches well-positioned to thrive in the evolving market.
As we cast our gaze towards the future, it becomes crucial to shift our focus onto the emerging trends and patterns that are shaping the industry.
It’s important to acknowledge that the property market has moved beyond the challenges of the past, including the impact of the COVID-19 pandemic. We now observe a resumption of construction projects and stabilisation of supply chains, among others. This signals a more favourable environment for the property industry.
More importantly, these improvements provide a solid foundation for industry players to capitalise on the evolving landscape.
In fact, CoreLogic, a property analytics firm, even saw a record-high increase of 28% in purchases of single-family homes in the first quarter of 2022. This is an indication that property and market trends have changed. And property types that were popular pre-pandemic might no longer be the best choice.
So in this article, we’ll be showcasing the best property types to invest in 2023 and beyond. But before anything, let’s make things clear:
There are different types of properties you can invest in. And some can be more profitable than others. But in the end, profitability in the property industry relies on being able to make the right decisions at the right time.
4 Best Property Types in 2023
Property Type #1: Apartments
Investing in multi-family units, specifically apartments, is a great way to build wealth through property. It’s because apartments are generally more affordable compared to single-family homes or commercial properties. So, you can acquire more units for your investment capital, increasing your potential rental income.
Apartments also offer economies of scale when it comes to managing property. Instead of having to deal with multiple properties spread out over different locations, you can manage multiple units in the same building or complex. This reduces your operational costs and streamlines your management efforts.
Additionally, apartments offer a more stable income stream than other types of property investments. People will always need a place to live, regardless of economic conditions. And apartments can provide a consistent source of rental income even during economic downturns.
Property Type #2: Rental residences
Investing in rental properties has become a lucrative industry thanks to platforms like Airbnb and Booking.com. Short-term rentals in popular locations like cities and beaches have grown in popularity as more people seek alternatives to traditional hotels and bed and breakfasts.
Investing in a rental residence can be a wise decision for 2023 because it allows for significant rental income in a short amount of time.
But keep in mind that thorough research and due diligence must be conducted before investing in rental residences. Factors like location, market demand, and local regulations should all be taken into consideration.
Property Type #3: Fix-and-flips
If you are willing to take on high risks to gain high rewards, then fix-and-flips could be a good property investing strategy for you. This process involves purchasing an undervalued property, restoring it, and selling it for a profit.
While it can be labour-intensive and costly, it is growing in popularity among property investors who are short on initial capital.
One approach to house flipping that has gained traction in recent years is micro flipping. This strategy allows investors to purchase properties without ever visiting them in person… making it a more convenient option for some.
But it is important to note that micro flipping, and i-buying strategies, in general, are considered risky investments. Therefore, they should be approached with caution.
Despite the risks, fix-and-flips can be a lucrative investment strategy for those who are willing to put in the time and effort. With the right property and restoration plan, you can turn a profit and potentially build a successful property business.
Property Type #4: Vacant land
Investing in vacant land has become a popular strategy for property investors this year. It’s because it offers a practical way for investors to have complete control over the development of their assets. With vacant land, investors can choose to subdivide it, hold onto it, or develop it into other types of real estate.
Owning land can offer more benefits than just generating cash flow.
Some investors profit from holding onto a piece of land that increases in market value. While others subdivide large lots and sell the smaller sections for a higher price. With the appropriate permits, vacant land can also be transformed into commercial or residential rental units.
Make the Most Out of New Opportunities with Archistar
In a post-pandemic world, the property market is showing great signs of profitability. And hopefully, this article has helped you make a shortlist of property types that you could invest in.
And if you want to start your property investing journey on the right foot, Archistar is here to help.
Archistar can speed up your research process by consolidating the most important property market information. It has multiple data layer features that can help you find the best properties to invest in without breaking a sweat.
Try out Archistar’s multiple data layer features and more for free today through this link.