Investing In Property: Is It A Good Time To Invest In Property Today?

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If you’re considering investing in property, “Is it a good time to invest in property today?” is a great question to ask.

Investing In Property: Is It A Good Time To Invest In Property Today?

Potential investors will often be thrown off track with reports they hear in the media about interest rates that might skyrocket, or that in 2 years time housing  prices will hit rock bottom, or  there will be a better opportunity to invest in property around the corner.   Let’s face it, the media loves (and needs) a good story!

Now don’t get me wrong – it’s a wise thing to keep your eyes and ears open as to what is going on in the economy.  But it’s more important is to use strong statistical data and research tools to find out for yourself what is going on, or is likely to happen.

Some of the key factors to look at, analyse and understand when investing in property are:

1.   What industry is going on in the area? Be sure to even delve into the management strength of large companies. You need to be sure there is employment prospects long term in any area you might want to place your investment dollars.

2.   Calculate your borrowings using a strong buffer for interest rates. Do your affordability figures based on todays interest rate, and also on a higher rate in case there is a rise.  Be sure you can afford to hold the property under both situations.

Below is an example calculation of the weekly holding cost of a property.  In other words – exactly how much you, as an investor, would have to find each week to keep this property.  It has taken into account fees such as stamp duty and settlement, ongoing property management fees, interest due, rent received etc.

Investing In Property: Costs to keep an investment propertyYou MUST know your numbers!

3.   Investing in property that you buy under market value will be a huge advantage. There is a saying that goes something like this “It’s not what you sell a property for but rather what you bought it for that determines your profit.”  Using a buyers agent or the power of group buying can pay off here.

4.   Understand the demographics of the area and what type of dwelling is ideal for prospective tenants or development.  Where are the main roads, any new council approvals in the system, new schools or shopping centres being developed?

So now, back to the question: Is it a good time to invest in property today?

Once you’ve considered these important indicators above as a starting point, you should have a much clearer pathway to being able to come up with your own answer.

Investing in Property With Your Head and Not Your Heart

Subscriptions to high quality magazines and data research such as RP Data are great places to begin doing your own research and obtaining this kind of information when you start looking for an area that will meet your investment needs. I suggest starting a spreadsheet to record all the information for different areas you  are considering.  After a while, you’ll start to see patterns emerging as to where high growth rates are, fast selling suburbs etc and before long, the information you have gathered will start to ‘speak back to you’.

Yes, this does seem like a lot of work.  But after all, your money is valuable (or should be!) and you want to invest it wisely.  Using statistics and numbers to make your decisions also takes the emotion out of your investing – making decisions with your head and not your heart.

If all of this seems too overwhelming for you to do on your own, another good idea is to associate with other people who have already had years experience investing in property.  Being part of a support community (like this blog) or mentoring group can  help put aside the nerves and fears that can be associated with making that investment decision.

Investing in property is about two things – education and action.

Do you remember when GST was first introduced?  People still invested in property and have made good money.  Do you remember the first stock market crash?  People still invested then in property and have made good money.  It was not the timing  their investment was made, but rather the decision around what, where and how much the investment was for. I started my investment journey when interest rates were up to 18% and was still investing in property through the stock market crash – yet I have never looked back!
There are always  going to be moving market indicators no matter when you decide to commence your investment journey.  You can use these moving indicators as an excuse to stay in your comfort zone and do nothing.  But I can assure you – sitting, wishing and waiting will not make you any money.  Action and implementation will!

Considering investing in property? Is it a good time to invest in property today?”    In my opinion…… if the numbers and statistics add up (as far as affordability,  holding costs, location, demographics etc), then the sooner you get on the gravy train, the sooner you’ll reap the rewards.

Here’s to your success!

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2 Responses to Investing In Property: Is It A Good Time To Invest In Property Today?

  1. pinnacle April 6, 2017 at 4:24 PM #

    I am with you, I thought that too. You suggest brilliant tips, I hope it’ll guide us.

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