When is the best time to invest in property?
Investors tend to ask
So, when is the best time to invest in a Property?
You may have similiar questions and are wondering what the answer may be, yes?
The old adage “the best time to invest in property was yesterday, and today is the second best time!”
Followed by “It is not timing the market that works; it is HOW LONG you spend in the market that counts.”
Both, based on experience are thoroughly accurate.
However if you are asking this still, the questions becomes : “what has stopped you investing in a property to date, and what is stopping you now, knowing that property is a 7 – 10 year investment vehicle, and in any given 10 year period, property values have always increased in value?
Perhaps it is your emotions that keeps preventing you from investing, always looking for that comfort feel in making that challenged decision. Yes?
Another life lesson is “whenever one applies emotion into any investment decision, you are guaranteeing yourself a lower return on investment or a failure to take action.”
If you genuinely want to improve your financial lot in life for you, your family and your next generations … work with a team such as ours at properT network, our 18 years experience in this space, helping clients just like you, improve on their financial position through astute property investment decisions, securing what we refer to as ‘Investment Grade Property’.
Principal of Economics
When demand outstrips supply in any commodity, that is when all market indicators demonstrate that the commodity pricing will increase!
In Australia, the ‘perfect storm‘ has already hit – supply is completely undersupplied, yet demand is on the rise on the back of population growth. And this perfect storm is worsening.
Vacancy rates are tighter than they have ever been in history of the Australian Property market, forcing Rent upwards for your tenants.
Low Supply + High and Increasing Demand + Low Vacancies + Increasing Rental Yields.
Does this help you identify the ‘perfect storm’ scenario which is your investment opportunity?
Current Situation in Australian Residential Property Market
- Continued, strong and deliberate Population growth, by government design.
- Requirement in Australia for 240,000 new homes per year.
- Currently 40% below this requirement – they cannot build enough homes to meet growing demand
- The National Housing Supply and Affordability Council state “significant shortfall in supply” and crisis will worsen over next 6 years!”
- Build Costs have increased / skyrocketed affecting affordability for people to buy to live
- Materials to build have increased affecting affordability for people to buy to live
- Shortfall in qualified trades people to build
- Soaring Interest rate increases making building that much more expensive
- Build costs as per above have risen, meaning price to consumer have increased whilst borrowing capacities have dropped
- Resulting in growing number of Renters due to lack of affordability to purchase
- Rents growing faster than wages
- Historically low vacancy rates
- Population growth placing massive pressure on supply of rentals
- Low supply of new dwellings is exacerbating this situation
- There are currently 290,000 people who are either homeless or on public housing wait-lists, this is not the Australian way.
Your Investment Opportunity into Property is now
What the above demonstrates to you the investor is that the time to invest in a property is Today!
Very strong and growing demand + low supply unable to keep up + high rents due to low supply + very tight vacancy rates = improved cash flow & capital growth potential
NOTE :
- Not all property is worthy of Investment
- – in fact a small percentage are, do you now which?
- Investors today are seeking out Higher Cash Flow investment properties
- – banks lend based on your income and having a high cash flow property in your investment portfolio means you can borrow that much sooner for your next one
- If you can combine capital growth + high yield, this is a preferred strategy that is available to you. Ask us how and where?
- If you have equity in your house / or a deposit and can borrow money from a lender, your investment journey can begin
- During which
- You maximise the power of leverage – using the banks money to help you accelerate your own financial planning goals
- Having a tenant help pay off your loan, so you can invest again
- Paying yourself first, and the tax man second by writing off certain expenses incurred whilst investing in a property – pay less income tax whilst you grow your own wealth
When demand outstrips supply = the time to invest is now!
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