Even if you only glance at news or current affairs programs, or just occasionally take a look at property websites, you won’t have failed to notice that we are in the midst of a bona fide housing boom in Australia.
Shares, commodities, cryptos and, most crucially, property prices are skyrocketing across the country, and housing in the most accessible, convenient and desirable parts of our capital cities and regional centres could soon become out of the reach of everyday homeowners and investors.
With analysts predicting that Reserve Bank interest rates will remain at or near zero for perhaps as long as the next three years, there is little prospect of the property price explosion cooling down. And the longer this boom goes on, the harder it will be for new entrants to take the first step on the property ladder.
The divide between those who own property and those who don’t in Australia
What does this mean for Australian property investors? In simple terms, you need to act now before prices become genuinely out of reach. There is the real prospect of a divide opening up between those who own property, shares and other financial assets, and those who don’t.
So if you have been thinking about investing in property in Australia, or considering growing your existing property portfolio, now is unquestionably the time to do so. Act now, before it’s too late and you are priced out of the market completely.
Why investing in property now is the right move
There would appear to be contrasting forces at work in the Australian economy at the moment — the price of precious metals is rising, the value of cryptocurrencies is increasing, share prices are going through the roof and the property market is booming.
And yet at the same time, unemployment is up to record levels, interest rates are virtually zero and we are seeing the introduction of quantitive easing.
These two seemingly contradictory economic features are happening at the same time because the overall state of the country’s finances means that it makes sense to migrate out of cash (i.e., savings in the bank) and instead invest in stocks, cryptocurrencies or property.
With interest rates where they are and house prices booming, it is therefore the ideal time to put your money to work and get in while you can, as there are no indications that the upward curve is going to end any time soon. In fact, if you wait too long, you might find yourself in a position where the best investment properties and locations are out of your reach.
Don’t miss out on the property boom
As house prices in our capital cities and major regional centres are predicted to rise anywhere between 16% and 22% before the end of 2022, this is the ideal time to buy an investment property. Rising prices are generally accompanied by increased rental demand, as buying property is no longer an option for many. Likewise, one of the fundamental principles of successful property investing is that the length of time you own investment property is the key to significantly growing your capital.
Already in 2021, it is estimated that house prices across all Australian capital cities have risen by as much as 7.2%, and there is no immediate end in sight to this current surge.
There is a real possibility of the gulf between those who own assets and those who don’t becoming greater than we have ever seen it in Australia. If you don’t take action now, it could ultimately be too late and you miss out on the chance to grow a property portfolio and significantly increase your capital for your retirement and the future.
It’s time to make a smart property investment
With a booming market, you need to get in as soon as you can, and the outlook for Australian real estate investing hasn’t looked this good in a generation. Don’t get left behind!
Our experienced property strategists can guide you on the best areas to invest across the country in order to take maximum advantage of surging house prices. In addition, we have access to new property investment opportunities before they become available to the individual investor, enabling you to get ahead of the curve.
If you want to find out more about how to be a part of Australia’s property boom, call Michael Lawton on 0407 785 560 or Danielle Charlton on 0411 268 795, or book an online property strategy session today.