Where is the Australian Property Heading?
Have you ever come across someone that invested heavily in property 20, 30 or even 40 years ago?
Most of the time these long term investors are now sitting on easy street. They always make you think about the price of property in 20, 30 or 40 years time from now.
Where will prices be in 2024, 2034, 2044 or 2054?
Here is a hint. The ABS is forecasting a rapid increase in Australia's population (see below).
Property that is conveniently located to work districts, hospitals, schools, transport corridors and desirable features such as waterways will almost certainly become more sought after.
The current investment property boom is underpinned by simple arithmetic. Income from a rental property is often more than the cost of a mortgage.
With interest rates sitting below 5% p.a. and rental yields often sitting above 5% p.a., the long term approach to property investing has not been this affordable in decades. This is especially the case when you consider that Self Managed Super Funds can now borrow to buy residential property.
If you would like to discuss your investment property plans, please give me a call. We have some interesting research that could help your decision making process.
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