There is a great deal of ambiguity floating around regarding the Australian property market in 2017. Lenders with minimum discounts, a rise in mortgage rates, and an expected increase in interest rates; all these are indicators that no one can truly predict what it has in store for Australian investors.
The Chair of the Property Investment Professionals of Australia, Ben Kingsley believes that plenty of opportunities still remain for investors who have a long-term property investment mindset and have performed their due diligence. He believes, “The long-term fundamentals of well-selected property remain strong. Investors should avoid making any rash decisions and keep focused on their long-term investment goals.” He further added that in order to look at the bright side of all these concerns, investors needs to think out-of-the-box to avoid oversupply and to conquer affordability issues.
“With more potential downside risk in our major markets, investors need to be strategic about their investment approach. The advice of qualified professionals has never been more important,” he said.
Presented below are some valuable pieces of advice from Ben Kingsley for investors looking to buy real-estate as a long-term investment in 2017.
Seek Professional Wisdom:
Before investing in real-estate in 2017, consult agents to buy an investment property. Property prices will become overvalued if the current interest rates prevail as suggested by the research conducted by SQM Research. Following you gut feeling when taking property decisions isn’t the wisest choice to make. Wherever money is involved, smart decisions need to be made. Therefore, before steeping into this uncertain market, get a team of qualified professionals, including a tax advisor, broker and a buyer’s agent on your side to discuss the prospects.
Analysts also believe that Australia’s biggest cities are less likely to witness any dramatic turnaround in terms of their value. This is why if you choose to join hands with other investors, it will help you overcome any affordability issues and stay ahead of the flux it is headed towards.
Account for Increased Interest Rates when Planning:
Before making a decision, it is advised that you take the interest rates into account as they are predicted to increase. The property business will not continue to harvest the same success it did in 2016 as residential loan costs are finally starting to shoot up after hitting an all-time low.
Don’t be Fooled:
You can find analysts talking about markets that are booming and sectors that aren’t, but don’t let that cloud your judgment. Casual hiccups in property rates are normal. Economic analysts may tell you that doomsday is near, but it really isn’t! Every sector, commercial or residential rate fluctuates but it eventually balances out. Stay focused on your long-term financial aspirations and invest in real estate that aligns with your current and future financial goals. If you have little to no idea, it is best to seek assistance from professionals to guide you along the way.
Invest in Inner City Apartments with Caution:
Increased construction of inner city and CBD apartments has created a supply which has surpassed the demand. More and more apartment buildings are being constructed in Melbourne, Sydney and Brisbane, forcing investors to be cautious when investing their finances. In 2017, apartment prices in CBD areas are most likely going to fall as predicted, which means investors really need to think whether it is a good investment option or not.