| Even though the cost of living has gone up Even though interest rates are the highest that Millennials (and younger) have ever experienced Even though times are tough Property value has still grown. In fact there is only one major/regional city in all of Australia that had a teeny retraction (mostly from migration) - everywhere has seen consistent healthy growth. Did you know that clearance rates for the sale of properties has also basically stayed the same as when we didn't have a cost of living crisis and when we didn't have high interest rates. Mortgage activity is up by 13.3% Prices rise in 88.4% of suburbs Borrowers are meeting their commitments What this means that if you have a choice to hold vs invest the latter will be the better option if your financial situation can support it. Just yesterday I was speaking to a young new investor who told me that she was going to hold and save for the next 18 months until everything wasn't as "intense". Now if you know me, you must know by now I am a numbers driven lady. So we sat down and calculated if she were to put away $200 per week for the next 18 months (the amount she could invest regularly) how much would she end up to put towards an investment. Then we calculated if she put a deposit on a block of land in the right place that isn't going to title for 18 months, not only can she a) still build her savings habit and grow her nest egg but b) at the time of settlement, sell the land straight away if she doesn't want to build and easily make FAR more than she was ever going to do with $200 per week for 18 months. (If math isn't your thing, we're talking $15,600 vs $40,000* At the end of the day the lesson that I am trying to teach is sitting on your thumbs and being cautious at this point in the market is going to cost you significant gains. The minute interest rates start to drop, there will be many more buyers in the market which will push prices of property up (supply vs demand). I have access to a few blocks of land for between $200k and $250k that don't title for at least 12 months. If you want in let me know asap and I can get the ball rolling for you. Only a deposit is required as settlement doesn't occur until title. If you're not a numbers person and would love to see some calculations on paper - reach out to me at 1300 736 754 and I can prepare some cashflow projections for you. Christine I love new friends and connections on LinkedIn - please connect with me here! |
Building Wealth Through Property: Why Owning Isn’t Enough
One of the biggest misconceptions in Australia is that owning property automatically makes you wealthy.It doesn't. I've met people who own multiple properties and still feel financially stuck. I've also met investors with just one or two well-chosen properties who are...
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