Are you itching to have another way of securing additional income or a change in career? Whether you’re in your 20s, 50s, or somewhere in between, it’s not too late to enter the property investment market. As a profitable way to make money in the present while also securing your financial future, property investment is a great option for financially-savvy people of all ages.
Let’s examine in more detail why there’s never a bad time to put your money into property.
Major Cities Deserve Another Look
In recent years, major cities such as Sydney and Melbourne were perceived as being unaffordable for many. Stagnation in the housing market and an increasing number of new builds mean that this is no longer the case.
In 2018, research showed how Sydney saw its largest annual fall in property prices in 30 years. While this news may seem disheartening for those who bought a property a few years ago, reduced newbuild production means now’s the time to capitalise on property in the city. Whether you choose to rent it out (and be a rentvestor) or sell it when prices rise again, this is definitely something to consider in terms of your investment strategy.
The Demand for Rental Properties is Likely to Rise
One of the most fascinating economic predictions for Australia is that the service industry will become one of our largest areas for economic growth. With the creation of over 2 million jobs on the horizon, this growth could also attract more people from outside the country, boosting demand for property.
Such individuals are likely to move to areas where the service industry booms. This includes tourist hot spots such as Sydney and Melbourne, among other key locations. Whether you want to target your rental property towards this increasing flow of expats or cater to younger Australians who are yet to hit the property ladder, buying property in these service industry hot spots should produce excellent returns.
A Temporary Lull Could Mean an Excellent Opportunity to Invest
Although there’s a lot of debate around the temporary lull in Australia’s property market, the bottom line is that this could be a good time to put money on property. Lulls and stagnation don’t last forever. A potential 4.8% decline in prices in 2019 will be the biggest drop since the financial crisis. Rather than seeing the decline as a reason to hold back, you can use it as a chance to muscle in on prime properties before prices rise again. In doing so, you could purchase a property at a lower price than if you delay until potential periods of inflation hit.
Take Advantage of Price Reductions in the Right Areas
Although taking advantage of the potential 4.8% price decline is a good idea, don’t start buying properties on an ad-hoc basis just because they’re cheap. Purchasing properties at random usually means engaging in little research, which may equate to taking a gamble. Instead, look towards the areas that are desirable or up and coming.
For example, buying a property in Brisbane can be up to 90% cheaper than purchasing a comparable property in Sydney. At the same time, it’s still close to major airports, offers excellent employment opportunities, and features brilliant schools. These are major factors that could further drive demand.
There Will Always Be Properties and Locations that are In Demand
When entering property investment for the first time it’s tempting to buy what you personally find desirable. Rather than seeking what you find appealing, aim for what is scarce and in demand. For example, apartments in cities such as Sydney and Melbourne are currently in demand. Combine this insight with the figures from the Australian Bureau of Statistics, which state that 24% of households are single-person, and you can see why one-bedroom apartments are a worthy investment in these areas. When a quarter of the population lives on a single occupant basis, buying a one-person apartment means you’re appealing to that specific rental market.
Always Remember Population Growth
Australia’s predicted population growth is another factor that should encourage more people to become property investors. According to the Australian government, the number of people living here will rise to 35.9-million by 2050. This means that, from a population perspective, you can expect consistent demand for property in the coming years. In other words, it’s unlikely that your property will sit unoccupied—that is, as long as you do things right, including property research and choosing the right location.
At Clever Finance Solutions, we provide services that will help you enter the property market. We specialise in guiding clients towards the best loan for their investment needs and will assist you in other aspects in your property journey. We’ll help you make the right financial decisions—contact us today and let’s get started.