Despite a somber start of the year, there is still a lot to look forward to for savvy property investors.

“The coming year is undoubtedly going to be one of opportunity for astute investors and now is the time to buy,” says Australian Property Investor deputy editor Vanessa De Groot. Capital growth won’t be the key feature of the residential property market over the coming year but there’s plenty more on the table for investors to feast on.

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“In addition to unwavering property prices in 2011, investors will be privy to hot buying opportunities with potential bargains on offer, improving rental returns and they’ll be able to reap profits by seizing opportunities to renovate, " she added.

“Rental growth will be the biggest feature of the market in 2011 – there’s already evidence of rental rates and yields being pushed up. "

“And with fewer buyers around, more properties available for sale, properties starting to spend more time on the market and vendor discounting on the rise, there’s greater chance of snagging a bargain when it comes to buying property.”

While price growth is expected to be fairly flat over the coming year, there’s little likelihood that prices will fall, which is good news for investors.

While the less informed might sit back on the sidelines this coming year, held back by fear, smart investors will be getting into the market, setting themselves up for the next stage of the property cycle, explains De Groot.

Right now the market is in a phase of slower growth, but astute investors will be thinking about the long term and looking for opportunities.

“They know the next growth period could be just around the corner,” De Groot says.

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