06 Sep Don’t let short-term concerns about property prices impact on your long-term future
For anyone currently investing in property in Australia, or considering entering the market, the constant barrage of news about falling property prices will understandably be having an impact on your outlook and optimism.
However, successful property investing takes a long term view, backed up by a sound strategy designed to meet your particular needs, and is built on solid foundations like knowledge of the market and the support and guidance of experts.
At Power of Property, we provide all of this and more, and this is why we are able to take a more positive view of the market, in spite of the widespread negativity in the media and the public mind. Our experience and success over time informs the strategies we devise for our clients, and this means we do not simply react in haste to scare stories in the press.
Below, we outline the fundamentals of our property investment strategy, and why now — despite reports to the contrary — is still the right time to enter the market.
Length of time in the market is more important than when you buy an investment property
A fundamental truth about investing in property is that the extent to which you are able to grow your capital is more dependent on how long you own a property, rather than when you purchase it.
Timing can of course be beneficial, but it is not the be all and end all. There is never a perfect time to enter the property market — apart from the first available opportunity.
As highly experienced investors ourselves, when clients ask about when is the right time to invest in property, our reply is always now.
History has shown that the cycle of property prices should not unduly influence investment decisions, as the longer you own a property, the more opportunity you have to ride out the inevitable rises and falls in the market, and successfully grow the value of your asset over time. Waiting for the ‘right’ time to invest really means just less time that your investment property is going to be working and gaining worth on your behalf.
Therefore, our advice is always that as soon as your financial circumstances make it possible is when you should be looking to invest in property.
Listen to experienced property strategists about the real state of property prices
Rises and falls in the housing market — boom and bust stories — have always been a staple of both the print and broadcast media in Australia, and more often than not the tone is somewhat shrill and not based on too much analysis.
Instead of clicking on the latest panic-inducing online article, we would recommend that you talk to experienced property strategists like Michael and Danielle to get a more rounded picture of the state of the market. In this way, you can make better informed property investment decisions that are designed to secure your long term future, rather than in response to short term scares.
This will also mean that you are getting advice and guidance based on high quality industry data and a range of economic factors impacting on the property market (e.g., factoring in population growth, infrastructure projects, supply and demand, interest rates and inflation, etc.), rather than simply the short term fluctuations in prices in a particular region.
Rises, stalls and falls in house prices are an inevitable part of the cycle, and so making investment decisions based on these factors — or worse, trying to predict when the next big change in values is going to happen — is not the way to grow your wealth.
The key is always to begin investing as soon as your financial circumstances allow it. A quality asset will, over time, always more than make up for relatively small sums that might be made or lost as a result of buying at what you think is the optimum time.
Choosing the right asset so you’re not impacted by fluctuations in property prices
Having said the above, this does not mean that any old investment property will do the job and will help you to achieve your financial goals. It is crucial to buy the right sort of asset in the right sort of location if you are going to get value from your investment and secure your financial future.
This is where the advice and experience of a successful property strategist is essential. At Power of Property, we have exclusive access to a range of new developments and other properties that are not available to everyday investors on the open market.
In this way, we can provide our clients with access to top notch assets in growth locations, with quality infrastructure planned or in place, and which are the type of properties history has shown us will increase in value significantly over the period of time in which they are owned.
Talk to Power of Property to find out more about the real impact of property prices
We are experienced property strategists, which means we understand the nature of the housing market in Australia and why the current state of property prices should never be the sole determining factor underlying your investment strategy and goals.
To find out more about how to get the best possible long term valued growth from your investment property, regardless of how prices are performing in the short term, call Michael Lawton on 0407 785 560 or Danielle Charlton on 0411 268 795, or book an online property strategy session today.