Is Investing In Property Still Worth It?
Here are our thoughts, to help you stop you losing sleep over whether to invest in property or not.
It’s been a wild ride these past few years, so it comes as no surprise that the property market has been on its very own rollercoaster.
Unless you’ve been holed up in the middle of the jungle minus a stable wi-fi connection, it’s impossible to have missed the constant - yet contradictory - media war cries that have fluctuated between ‘record prices’ and ‘rocketing returns’ to ‘property crash’ and ‘interest-rate woes’.
This time last year, the property market was out of control, with record-low interest rates and generous government incentives driving prices up, up, up, while feverish buyers snapped up once-undesirable pads for amplified prices.
But where does it leave you now that the interest rate honeymoon is over, and property values are (supposedly) sliding back down the other side at a rate of knots?
Is it still a good time to invest in property, or should you wait it out to see what happens next?
Like a good old-fashioned choose-your-own-adventure, it’s hard to predict, but we think there are still plenty of reasons to keep your seat on the property train for the time being.
Here’s why.
Values could (and probably will) still go up.
While we’re in the midst of a slow-down, with property prices heading south, it pays to keep in mind the longer term trend, which still places average property values waaaaay above pre-pandemic levels.
If fact, with its growing population and strong economy, South Australia is well-placed to see prices remain stable - at least for now - which leaves the door wide open for more rises in the future.
Plus, there are still plenty of hotspots for investors to choose from - both north and south of the city - where capital gains are likely, and rental returns solid.
Secure and Stable.
If you’re lucky enough to have a cash lump sum sitting in the bank effectively collecting dollar dust, property investing could be a good option.
Why? Because the market is typically stable - far less volatile than stocks or shares - and a better long-term earner than cash.
And while recent times have shown us that the property market can sometimes go up and down reasonably quickly (there’s inherent risk in any type of investment) it’s certainly not going to crash overnight like crypto.
The way to insulate yourself? Do your research and identify the right markets.
Whenever you choose to invest, there will always be areas more lucrative than others, suburbs or towns that are on the cusp of a boom, and gains to be made long term.
Remember - ‘buying now’ is always the best decision somewhere. You just need to find that somewhere.
Short term pain, long term gain.
No matter when you invest in property, if you plan to hold onto it long term, the likelihood is that you’ll walk away a winner.
Why? Over time - even where there have been significant ‘blips’ and values have fallen momentarily - property prices have been on a steady upward trajectory.
So whether you bought ten years ago, five months ago or have plans to buy soon, investing in property now could be the short-term leg up you need to secure long-term wealth.
Rentvesting is a viable option.
What’s ‘rentvesting’?
Put simply, it’s a way to buy something you can afford while you go rent somewhere you love.
If your mortgage budget only stretches to property that’s well shy of your dream home, but you still want to invest in property, now could be a good time to consider it as a long-term strategy.
That’s because you’ll be able to lean on the rental return to help pay down your mortgage (read: ride out the interest rate hikes), while you benefit long term from any capital gains.
While purchase prices soar in many sought-after areas, you can get best of both worlds by living where you want while getting a foot on the property ladder too!
So if you’re considering investing in property, and losing sleep over whether now is the right time to buy, we’d say it absolutely is.
And that’s not because we think you’ll be getting a bargain.
Because if you compare today’s prices with five years ago, you won’t be.
But from a long-term point of view - in two, three, ten years from now - today’s prices will look cheap!
And you’d hate to kick yourself for not taking the property plunge sooner.
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And if you’d like some expert guidance and support? We’re ready and waiting to answer all your questions!
If you’re just getting started, or looking for more valuable property investment tips, tricks and hints, check out these other handy articles on our blog:
× Frequently Asked Questions About Property Investment
× Renovating Your Investment Property?
× How to Pick the Perfect Tenant for your Investment Property
And for all the very best property sales or investing advice, why not connect with us - We Connect Property are your local property market specialists with over 21 years’ experience in buying, selling and managing property in southern Adelaide.
Check out our 5 star Google reviews here to find out what our happy clients think!
Give us a call on 0403 799 983 today, or drop a line to sales@weconnectproperty.com.au - we can’t wait to chat!
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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.