With property prices having surged over the past 12 months, many investors might be wondering if they’ve missed the boat.
Here are 5 reasons why now is still a great time to invest.
1. It’s never a bad time to invest in good locations
There’s an old saying that the 3 most important factors in real estate are ‘location, location and location’. It’s as true to today as it ever was.
Property prices may not continue to rise as fast as they have over the last 12 months, but properties in good locations will continue to grow. What might seem like a crazy price right now will be a bargain in time.
Just remember every other time property prices seemed unreasonable … wouldn’t you love to be able to purchase at those prices again !
2. Interest rates are likely to stay at record lows
Interest rates in Australia are as low as they ever have been. And the good news is that they’re likely to stay that way for at least the next few years to help the economy recover post-COVID-19.
Low interest rates give home buyers and investors’ confidence to borrow, which is good for the property market.
3. Australians have saved more money during COVID-19
One of the few upsides of all the COVID-19 restrictions we’ve had to endure since March 2020 is that Australians have saved a lot more money. Deposits in savings accounts in Australia have grown by more than $100 billion.
Many Australians are using this money to renovate, upsize and invest.
4. The economy and employment will bounce back
With Australia’s vaccination rates surging towards the government’s 80% target to ‘get back to normal’, lockdowns will soon become just a painful memory. That’s good news for businesses and the economy.
A healthy economy with lower unemployment levels is good for consumer confidence and for property prices.
5. Property is a long-term game
There is no ‘right time’ to invest in property. History shows that Australian property prices have a long-term growth trend, even those in poor locations. But of course, those in good locations do much better.
Property prices move in cycles. There are times when prices rise, times when they stay stagnant and even temporary periods where they may fall. No one has a crystal ball to predict exactly when those times will be or how long they will last.
But if you hold onto property long-term (10 years or more), you’ll give yourself more chances to capitalise on the inevitable and extremely profitable upswings.
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