Reasons you should feel positive about property in 2014
The media certainly has had plenty to say over the last couple years with plenty of doom and gloom forecasts about what was ahead for property investors. As usual, most of them got it wrong!
Property values increased by almost 10% in our main capital cities in Australia, with some areas performing even better.
So here are a few reasons to get excited about property investment for 2014
- The Australian economy
continues to remain in good shape and the world's largest economies have been on the recovery path and are expected to accelerate in 2014.
- Low Inflation Rate
Australia has a low inflation rate which will allow the RBA (Reserve Bank of Australia) to keep interest rates low.
- Population Growth Continues
Australian population grew by 407,000 in the 12 months ending June 2013 and continues to grow
- Shortage of housing
continues with the gap between demand for housing and available properties continuing to widen.
This provides a huge opportunity for property investors as when supply is much shorter than demand this pushes rental returns up for you the landlord.
- Interest Rates To Remain Low
Our low interest rates are helping buyers get into the property investing market with a reduced repayment commitment. Rates are forecast to remain low for the foreseeable future and may even drop a whisker more during 2014
- Affordability Continues To Improve
Despite what the Media may tell you about how property is no longer affordable, the HIA - CBA Housing Affordability Index paints a very different picture, with affordability continuing to improve as a result of rising wages and low interest rates.
Currently many properties are available for less than a latte a day, In some cases we can actually deliver cash flow positive properties in blue chip Suburbs.
- Property Values To Increase Further
Despite the media reports and doomsayers saying we are in a "property bubble" we are actually in the early stages of the property phase where property prices are in a growth phase. You will of course find some areas that will not perform as well as others which is why you need to engage professionals such as Latte Property to help ensure you avoid the many pitfalls and increase your chances to maximize your returns.
One extra reason to feel positive about property is that we currently have some outstanding new properties to choose from. New townhouses and new apartments in smaller boutique developments in various quality locations, many of which have forecasted growth that well and truly exceeds what is forecast for the CBD
Book a Free Strategy Session today so we can help you formulate a plan to ensure you take advantage of the excellent current buying opportunities.
Looking forward to talking with you soon
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By Darryl Simms
Author | Speaker | Property Investment Specialist