People like property. It’s a relatively safe investment giving good solid returns. Compared to shares, which can swing wildly in price, or cash, which is little more than boring, property is an exciting investment that makes its owners feel good.

For anyone interested in property investment, investors need to know what sort of property to buy and the right price to pay. Returns come from two sources: any capital gains over time and rental income.

For dutiable transactions with a settlement date on or after 1 July 2011, land transfer duty will be reduced for eligible first home buyers purchasing a principal place of residence (PPR) valued up to $600,000. To be eligible for the duty reduction, the first home buyer must have received or be entitled to receive the First Home Owner Grant and must also reside in the property for a continuous period of 12 months commencing within 12 months of settlement.

The duty reduction of 50 per cent will be phased in over four years, with a 20 per cent reduction on 1 July 2011, followed by additional 10 per cent reductions on 1 January 2013, 1 January 2014 and 1 September 2014.