There seems to be a lot of talk and articles going around regarding our looming change in economy… Higher interest rates… And possible lowering of asset prices as supply is starting to overwhelm demand.
My question is, for a couple looking at getting into the property investment market in the next 12 – 24 months would you recommend getting in ASAP or holding off and waiting to see if things get worse before they get better?
Barlow it is like any investment.
If the fundamentals are right then it doesn’t matter when you get in you will do well in the long term.
In saying this i remember when my parents purchased their property in the UK in 1966.
They paid 4400 pounds for it and their Bank manager told then it was at the peak of the market and they would lose money.My mother still owns the property and it is probably worth $1.4M pounds.
Not bad rate of return over 50 years.Certainly here in SE Qld there is no sign of the market slowing and a gradual increase in prices is expected over the next 5 years.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
My question is, for a couple looking at getting into the property investment market in the next 12 – 24 months would you recommend getting in ASAP or holding off and waiting to see if things get worse before they get better?
Hiya
It’s impossible to answer.
Property is generally a long term wealth creation investment – so it’s the time in the market (as Richard’s example above points out) which is just as important as timing your purchase.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Barlow,
The answer would change too, depending on just WHERE you are looking to buy. If wanting to “Time” the market, then a look at the Property Cycle for the area you are purchasing would give a broad-brush indication of “Buy or Don’t Buy”.Re your comment “possible lowering of asset prices as supply is starting to overwhelm demand” – the main area I see THAT happening is in apartment towers of major cities. These have been cranking up for the last few years and large numbers sold to overseas investors. Watch out if/when those overseas investors bail – because their apartments can ONLY be onsold to residents (other overseas investors are not allowed to buy second-hand – refer FIRB).
Now THAT will cause shrinking values and supply/demand imbalances over and above the current “too many apartments being built” scenario.
Other than that, we still have one of the most stable countries in the world, and the drive for immigration won’t be lessening any time soon. I am not seeing any major property value falls in my crystal ball (save for inner-city apartments as above).
Disclaimer: All just my opinion – I am not any kind of accredited adviser, and my thoughts won’t necessarily apply to YOU !!
Benny
Thanks for the input fellas… I think your right.. Regardless of the short term movements in market, history as shown that over long term investment property has always grown in value. I think I will continue to stick to my goals and get into the market as soon as my situation and finances allow me. Even if times get tuff I will strive to find a way to make it work… Appreciate your time
@barlow – http://www.blog.residex.com.au.tmp.anchor.net.au/wp-content/uploads/2015/11/Table_1_October_Statistics_Summary.jpg
Sydney 7.06% and 6.32% for the last 10 years……
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