Investing in property at the moment is a no-brainer. The major capital cities have gone past the bottom of their cycles and are heading up, auction clearance rates are on fire and mortgage rates can be found below 5%pa. Meaning your average Australian property is going to be pay for itself, even with 100% debt. As we have said for a long time, it is the debt that gets you wealthy over time (inflation pushes up house prices and wages while the value of debt goes down in real terms because you are being paid more). So if you can secure more debt backed by property selected on sound principles with underlying good economic fundamentals you will be placing yourself in a optimum position to ride the next wave of property growth.
The “experts” are even now saying there’ll be another housing bubble. (My how quickly times change!)
Currently however there are no real signs of a housing bubble. Property prices are only just back to where they were three years ago for most areas. If we are at the bottom of a price growth wave that will get so big it is worthy of the label “bubble” then best we all jump in the water and start to paddle. Surf’s Up and you don’t want to miss the wave.
With investors and SMSF’s being major buyers in some areas you need to make sure you aren’t jumping on a wave to nowhere. Selecting property for investment is about finding property with the maximum potential upside and little or no downside. This property will go up in price irrespective of who is driving the market. And stay up if all the drivers go away.
It just so happens that is exactly what I do at Investors Direct. If you want to find out how to pick the right property for the next wave then why not come to one of my workshops held on Tuesday nights at our office. Just email Natalie.conti@investorsdirect for details.