How Should You Invest in this ‘Interesting’ Phase of the Property Cycle?
If you are like many property investors, you’re probably wondering whats the right thing to do at present.
Should I buy or should I wait?
It’s impossible to escape the cold hard fact that the Australian property market is undergoing major changes. Thanks to our good friends, the Australian Prudential Regulation Authority’s macro prudential measures restricting lending to investors, and the banking royal commission making banks allergic to risk. It is no secret, the availability of credit has tightened, especially for investors and our property markets have moved to the next phase of the property cycle. The current paradigm is one of slumping prices in some locations an slower property price growth in others. We have had a few amazing years from a property investment standpoint, especially if you invested in Melbourne or Sydney, but it’s not necessarily to late to invest.
Although some property pessimists are saying the old ” I told you so”, in our opinion ad that of many other professionals the markets are behaving normally. Periods of strong capital growth such as we experienced in some of our capital cities in the last few years are always followed by a period of flat growth, no growth of falling prices. Thats just how markets work, especially after phases of unsustainable strong growth as we experienced in the Melbourne and Sydney property markets.
Investors who step into the market today will beed to pay attention and be very diligent into what asset selection they will be investing in. Property investors need to be more strategic and think long term.
So is it possible to invest successfully in the new environment?
Yes it is, and the key to investing in a challenging market is to play it safe and not go out on a limb and risk your savings on the next big thing. Smart investors stick to a time tested, proven strategy and only buy investment grade assets. That is properties which will be in continuous strong demand from a wide range of owner occupiers and tenants. There will always be opportunities in the property market for wise investors.
Don’t be deterred by the current market conditions and don’t focus on trying to time the market – it only leads to disappointment. Instead have the right plan and strategy in place, so whether you are getting started or looking at growing your exisiting property portfolio the team at E-Fisheint Property Solutions is here to help you.
To get in touch with one of our friendly strategists or just looking at finding out a bit more about the property market, don’t hesitate to call us on 1300 148 417.
We are really excited to potentially be helping you in the not so distant future. However, until we meet then, we wish you all the best with your investment endeavours.