Is Now The Best Time To Invest In Property?

The property market has undeniable ups and downs. It is important to review the state of the economic business cycle to maximise the benefits of investment. Investment returns are driven by 4 important factors such as: timing, location, infrastructure and investor confidence. Today’s focus is on timing.

Timing means time of opportunity. It is well known that long-term investment in property gives maximum returns by staying true to a long-term investment strategy that delivers far higher returns than jumping in and out of the market.

A well located, highly sought after property rarely declines in value over the long-term. Property investment is all about capital growth that can be achieved over the long-term. A sought after property is only made available during the top of the economic cycle allowing the investor to maximise return.

Being social and absorbing information allows one to be influenced by the economic news. There is competition amongst purchasers during the upturn market which results in paying a higher price. However, an investment during the down turn may bring significant returns.

The existing environment suggests that the demand in the property market is to remain high in the coming year. Investors are said to be the most active of all in Sydney. The value of investor loans nationally have increased by 3.7 percent in September 2014, while value of owner occupied loans rose by just 1.4 per cent. Researchers made a forecast of 8 to 12 per cent capital growth in Sydney property for the current financial year.

The economic pattern shows an expansion to peak up to December of 2014 which is entering a contraction phase as evident by the reduction of interest rates at the opening of 2015. The RBA (Reserve Bank of Australia) has become slightly more cautious on the economic outlook. The forecasts show ‘a little lower’ than expected growth to remain below trend for 2015 and will pick up above trend in the later forecast period of 2016/17. The RBA anticipates slightly lower underlying inflation in 2015 –up to 3 percent. The lower inflation outlook is beneficial for the economy as it encourages consumers to buy goods and services. It also makes it more appealing to borrow money since interest rates are usually low during periods of low inflation.

It’s important to consider timing and the right type of investment. Correct timing and the right kind of property produces the desired outcomes as well as understanding the market and its value regarding the location of property and the annual returns they expect to meet. Choosing developers that recognise that success is the ability to sustain a system beyond its initial growth and carry it through to the future is important. Eagle888 Ltd offers reliable investments that have undertaken this adequate preparation. Contact us when you’re ready to start your investment journey with Eagle888 Ltd.