Imagine your life one year, two years, five years from now…
What does it look like? How are you spending your time?
What have you achieved and what have you let go?
For me property investing is a lot like investing in your health.
When you first began looking after your health, you learn how to train and how to eat well, you have to show up and be consistent.
The great thing about looking after your health is that over time it becomes easier. As you begin to train you start to feel better and you realise that you can do more in less time.
The same is true in property.
It takes more effort when your starting out, but with consistent action, education and time the results come faster.
For those of you who are looking to get into the property market this year here are 7 reasons why you should buy an investment property in 2013:
1. Interest rates are at a record low.
With the reserve banks official cash rate at its lowest point since 1959 there hasn’t been a more affordable time to enter the property market in the last 54 years. http://bit.ly/16qFBFT
2. Lower interest rates are driving more investors into the market.
The combination of lower interest rates and the potential for short-term capital growth are driving more investors into major markets such as Sydney.
The latest figures from RP Data show that the average house in Sydney is spending just 30 days on the market before its sold, while apartments are going in 28 days.
Melbourne is just behind at 40 days, while Perth, Brisbane and Adelaide are all taking a little over 2-3 months. http://bit.ly/15oNmOe
3. Property prices are expected to rise in a number of capital cities over the next 12 months.
According to real estate research firm SQM’s managing director Louis Christopher the lack of supply in Sydney is creating steep price growth, with home values up by 2% in July, nearly 4% over the past quarter and nearly 7 per cent so far year according to RP Data. http://bit.ly/15oNmOe
4. Australia is experiencing a continued housing shortage.
Tim Toohey, Goldman Sach’s chief economist argues that Australia is facing an acute housing shortage due to; population growth, decline in new housing stocks and a rise in the number of young people and investors looking for properties. http://bit.ly/12FzdLE
5. Increased competition amongst mortgage lenders.
With mortgage rates between lenders extremely variable at the moment (almost 2% in some cases) you have an opportunity to select a lender based on the criteria that best suits your personal budget and goals. http://bit.ly/18gzMd
6. Higher auction clearance rates.
Traditionally higher auction clearance rates reflect an increase in demand and can in turn result in an increase in property prices. Historically this generally occurs when action rates are over 70%, which is being seen in the Sydney, Melbourne and Adelaide markets according to June 2013 data. http://bit.ly/16GuFSp
7. Availability of hidden gems.
There are literally hundreds of suburbs throughout Australia’s capital cities just waiting to be discovered. A great example of this is a suburb in Sydney called Seven Hills where average house prices are 34% cheaper than neighbouring suburbs such as Baulkham Hills. Examples like Seven Hills can be found in almost any area as suburbs fall in and out of popularity. A good investment strategy can be to piggy back on the back of high performing areas. http://bit.ly/18gAeZo
Getting started in the property market can be a daunting but incredibly rewarding process.
As this year draws to a close there are many signs that 2013 will be a solid year for investors who have done the research and identified an opportunity.
If you have a questions, or would like me to write on a specific topic let me know in the comments below…