Investors need to understand the market they are investing in, whichever one that may be. It is important to research facts, data, potential profit and loss as well as fees and charges, rather than rely on speculation or observation, if any of theses are overlooked you place your capital at risk.
Some facts associated with property investing are outlined below,
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Demand for housing is determined mainly through demographic changes. These changes include:- population growth (increased migration, higher birth than death rates), changes in household size (through divorce, children leaving home).
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The rate of new dwellings being built is increasing - an analysis conducted by the Commonwealth Treasury estimated that the demand for housing will increase to 200,000 per annum by 2010 while new dwellings are expected to reach only 150,000 to 160,000. Add to that a shortage of available land and the result is an imbalance between supply and demand that can only result in Australian property values increasing.
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Affordability is always an issue. When is the right time to enter the market? The answer to that is always, ‘Now is as good a time as any’. What you must do though is look at ways to organise your finances and understand what way is going to work best for you.
The Government has extended first home owners grant assistance into the first half of 2010 to encourage entry into the property market so if your in a position to take advantage of this. Another option you may consider is to buy and rent. This strategy means you buy in an area you can afford with the intention to rent the property out, the property has the potential for capital gain over time and can often offer a high rental return. Meanwhile you rent in an area that suits you for location and work, with the freedom to relocate as desired. The idea is to get into the market now and stay there for the long term. If, as a buyer you can combine solid research with a medium to long term outlook you will find many opportunities offering good capital growth.
So don’t get discouraged by listening to reports of economic turmoil a few wise men in the past have created massive wealth in similar times, just be open to finding the right oportunity for you.
Power Thought
I am open to the opportunities that are always around me.
Repeat this thought often.
Teresa and the Team at
