Any savvy investor or financial advisor will tell you that the best and safest way to invest is to:
- understand the risks involved in different types of investments;
- know what you want and why, and what timeframe to achieve this goal; and
- diversify your investments.
Diversifying your investments means spreading your money across different asset classes (e.g. cash, fixed interest, shares and property). In other words, don’t put all your eggs in one basket, so that you don’t lose all your money if one type of investment fails. Cash and fixed interest are considered low risk, but also have low returns. Shares are high risk with high returns, but can be very volatile.
Property, on the other hand, is tangible, incurs capital gains and has high returns if the property is in the right location to attract 100% tenancy. One place with a high demand for rental properties is suburbs with learning centres such as Caulfield. However, finding the right property requires the expert help of someone who lives and works in the area and therefore, knows the area well, such as real estate agents Caulfield.
Why invest in Caulfield?
Caulfield is ranked in the top 100 most liveable suburbs in Melbourne with Caulfield North ranked in the top 50 out of a total of 321 suburbs. This ranking is nothing to sneeze at if you take into account that Melbourne has been ranked the most liveable city in the world in the past few years. What makes Caulfield and its surrounding suburbs so special is because it is only 12 km from Melbourne’s central business district. It is home to:
- Monash University – Caulfield campus;
- Caulfield Racecourse;
- Caulfield Park
(a large Victorian garden which includes a decorative lake, playing fields for different sports and a war memorial).
However, the best feature of Caulfield is probably its easy access to the city and other suburbs because of the high number of trains, trams and buses that service the area. This together with Monash University makes Caulfield a magnet for students and student accommodation, and that means a high demand for rental properties and an investor’s haven.
For those who love to dress up for a day at the horse race with some friends, Caulfield has the Caulfield Racecourse, a world class racing complex where events such as the coming Easter Cup Race, Ladbrokes Park Race Day and Mornington BMW Cup Day are held.
This site is the ultimate event venue as it has parking for over 4.000 cars and is only a short walk for those taking public transport. Its features include panoramic views and historic architecture. With over 8,000 square metres of indoor space and over 20,000 square metres of outdoor exhibition areas, this venue would attract thousands to Caulfield.
Thousands of visitors to the area means more trade for businesses and thousands of students means more demand for rental properties. It’s no wonder then that Caulfield has become a sought after suburb for investors and people who want to live there. However, high demand for housing could mean that there may not be as many properties available for every buyer. So you have to act quickly with the help of real estate agents Caulfield because the early bird catches the worm.