Property markets around the country are constantly changing and most of our capital cities are currently going through “price correction” phases following booms.
So what’s important for property investors to keep in mind right now? Here is a compilation from our colleagues who are investment property and finance experts:
- Invest with your head, not your heart – as always, property investing is a numbers game. Make sure your numbers add up – don’t just trust that they do – understand them, run different scenarios, test them, know that you can weather a storm – like a period of vacancy or increase in interest rate.
- Take a long term view – unless you’re a property flipper, property investment should have a 10+ year lifespan. If you take a look at the value of a property today, it may be lower than you anticipated. But, in all honesty, the value of the property today doesn’t matter unless you are selling or getting it valued for re-financing. You’re in this for the long haul so don’t expect to be delighted by every little snapshot in time!
- Get serious about your investments – Don’t leave things to chance or to passive management. Get involved and engage experts – from your financial planner to your mortgage broker, your real estate agent or investment firm to your property manager. Active management can make all the difference. Your goal is to buy well and manage better. Get the right team to help you and be open to learning from them.
- Beware of the doomsayers – We need to recognise that the role of the media is to sell their publications – or engage online so they look great to their advertisers. We’ve all heard the saying “never let the truth get in the way of a good story”, well that’s often the case with the media. One minute they might be proclaiming it’s a time of boom and then next it’s doom. Keep your eye on your portfolio, talk to your trusted experts and stick to your game plan.
- Don’t be paralysed into inactivity – the best way to overcome fear is to gather more information. If you’re fearful of the risk of investing, then learn more about it so that, when the time is right for you, you have all the information you need to make a great decision.
- Run your own race – Don’t follow the pack just because someone says “it’s a sure thing”. Whatever their “sure thing” might be, might not be best for you. Work with a financial planner, create an investment strategy to meet YOUR needs and then take action based on that plan.
If you’re planning on investing in property this year, please talk to us first so we can make sure you structure the investment in the way that best suits you. We can also refer you to a team of trusted professionals who can help source the property and arrange finance.