Why Right Now is a Good Time to Invest in Property

Why Right Now is a Good Time to Invest in Property

There is a lot of confusing press about the property market in Australia right now. We’ve experienced a drop in values, and this has caused some to go into a panic and spurred many to start spreading misinformation about a scary short-term that could see values drop even further.

Prices have dropped, this is true, but this dip was predictable, so is the inevitable uptick that is on the horizon, if you know what you’re looking for.

Now is the Time to Invest in Property

Property works on a cycle, and this cycle can run over a period of 5 to 9 years. In the last 15 years, we have experienced three of these cycles in Australia’s capital cities. The cycle goes like this: boom, slowdown, slump, recovery, and repeat. Where we are at in the cycle determines whether it’s a “buyer’s market” or a “seller’s market”.

Right now we’re in a slump. Valuations have gone down, there are more sellers than buyers and there is a general lack of confidence.

It’s a correction phase. Prices rose exponentially in recent years and now the market is correcting. This is the time to buy.

“The fundamentals underpinning property values in Australia remain solid. Rock solid. What we are seeing now is an important part of every major asset cycle – a correction in values after a sustained period of growth,” – says John McGrath in The McGrath Report.

“Sydney and Melbourne prices might correct by another 5% to a maximum of around 10%. In 2019, I see the strong possibility of a mini-rebound as buyer demand grows at adjusted pricing levels.”

If prices do decline further, this is a huge win for buyers; especially for younger buyers who, until now, have seen property prices at a figure they couldn’t possibly imagine reaching. This drop is a much-welcomed opportunity for young buyers to enter the market.

It’s Time to Re-Think Property Investment in Australia

Not only do new buyers need to re-think what they’ve heard about the drop in prices, looking at it for what it is: a fantastic opportunity to get into the market, property developers are also re-thinking what is required of a property. Considering the younger market and their needs, swapping out yard space and extra bedrooms for functional spaces.

“You used to need a desk and possibly an office; now you need a kitchen bench the right height for your laptop, or a sunny courtyard with connectivity.

“These changes are dialing down in home design because we don’t need to create a space (for study/work); it is more about creating spaces where people want to live,” says Adam Haddow, Director of SJB, a leading architecture and urban design studio.

And for those that still want the yard and four-bedroom dream, there is more good news. Australia’s regional areas just a short distance from the capital cities have come into their own in recent years. No longer like stepping into the past, many regional cities are now thriving economic centres.

Large regional cities are actually some of the East Coast’s best-performing property markets right now. And the trend of city dwellers migrating to regional areas is bringing more good news for those who want to purchase property in the city, the flood moving out, are causing prices to drop in the metro areas.

How Do We Know When to Buy an Investment Property?

ASEA is an Australian, and SE Asian boutique Investor focused property investment firm that focuses on delivering our client’s high-value real estate wealth-creation opportunities. We assist with portfolio development, property acquisition and asset management. Our real value is that we assist investors in acquiring properties; we do not sell them. Therefore, our focus can remain on educating and empowering our members, while offering complete transparency. We afford investors access to unique off-market investments, conducting research and feasibility to ensure the properties are viable, removing this burden from our clients.

If you’re wondering when to buy an investment property, why not join our ASEA’s Property Investor Club to become part of our Inner Circle with access to properties below market value? Come to one of our exclusive Inner Circle Cocktail Evenings in April to learn how to purchase an investment property.

Why Join the Inner Circle?

The Inner Circle gives Investors continual access to off-market property investment opportunities and opportunities to co-invest. It’s a community of like-minded people, a place where they can gain an education, as well as support and empowerment, providing them with expertise and marketplace intelligence that helps direct Investors to the right decisions.

If this sparks your interest and you would like access to high-value real estate wealth-creation opportunities available only in the private market, please register for one of our upcoming events.

Contact ASEA today to learn more.

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