Why the Time to Invest in Property is Now
Thinking about buying an investment property but keep putting it off? You’re missing out on financial returns the longer you delay.
While many Australians will sit on the sidelines wondering ‘What if interest rates go up?’, ‘What if I’m not rich enough to invest in property?’… the successful investors out there, use research to make educated decisions to get their investments right and make a fortune.
Remember how much cheaper property was 10-15 years ago?
You could be saying the same about today’s prices, 10 years from now. You could be earning from your investment property right now. The longer you delay investing in real estate you’re missing out on the current low-interest rates and property prices.
The right time to invest in property may be now! It could be the best path to growing your future wealth and comfortable retirement, so don’t let the fear of ‘what ifs’ hold you back from achieving financial freedom.
One of the top tips is to Invest with your head, not your heart.
Rather than buying emotionally, like where you want to retire or where you want a holiday home, smart investors make informed investment decisions based on researching the housing market. Buying a property below market value, in an area where the demographics are going to drive capital growth, and where there are other growth drivers like future land developments, are all worth considering.
Investing in residential property is all about a high-growth, relatively low-yield investment. Those seeking to build a significant property portfolio will typically put high capital growth ahead of cash flow.
Remember that land appreciates in value.
Its one of the rules successful investors use. But not all land appreciates equally, so they also recognise that they want to buy land in the right areas, areas where there is strong demand and minimal supply. This formula could also see your properties attract constant strong demand.
Have you got lots of unused space in your backyard where you could build a granny flat? The good capital growth on vacant land may be an attractive option. But vacant land doesn’t provide income, and without income, there are no potential tax advantages, making the land less affordable with lower returns.
Looking at where future generations, including an ageing population and potentially more singles and couples, will want to live in the future, may also determine the type of property that will be in demand in the future.
Successful investors surround themselves with a team of professional experts. There are 9 experts you should include on your property investment team. From the real estate agent to your lending specialist, each player has a different yet vital role to help you towards investing success.
It’s also important to remember that the property market moves in cycles. During a boom, everyone is optimistic and expects the good times to last forever, just as we lose our confidence during a downturn. The best thing you can do is make the most of the opportunities and ride out the rough patches.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying or investing in property, you can contact us for information about the best options for you when it comes to your mortgage.