1. The Only Certainty Is Change
The property market is forever changing and it finds it stability at certain points, but there is no one-size-fits-all strategy. Capital growth should remain in focus when it comes to a long term property investment strategy. Even in long term strategy, you’ll have to be flexible enough to grab the opportunities and adjust in the changing market.
Changes to finances continued in 2018 as it became crucial to get as much as you can out of every dollar of your borrowing capacity. It was often recommended selling underperforming properties but as a result of not being able to replace the exposure to the market, we have to change our strategies until the credit extension wheel turns.
2. Refrain from Hot Spotting
According to the market we studied in 2018, it could be a better idea to go with proven investment strategy over the next few years. 2018 brought tough lending conditions and changes in the financial world resulting in affordable constraints that have softened the market. It is expected that over the next few years we might witness steady but slower price growth in most locations and more decline in prices in other markets.
While the market may look attractive for the next hot spot, 2019 will not be a year of playing just on assumptions. It will be a wise decision to be choosy in your asset selection and make boring investment decisions. Keep your eyes on the locations that have shown stable growth in the past. After picking the right location, find the property which shows most potential for investment.
This is the time to focus on the big picture, on capital growth and how your property can prove to be a worthy investment of your funds.
3. Review the Performance of Your Property Portfolio
It is important to keep track and regularly monitor the performance of your investment. Investors often make a mistake to hold underperforming properties, either they are emotionally attached to it or hoping that their property will give higher returns in the future. It may seem that it is not costing you anything but in long term this strategy may not be beneficial for your portfolio.
4. Local Factors Drive Property Market Performance
According to our reliable investment advisor in Melbourne at 10 Property in 10 Years, property market is greatly affected by the local factors like city’s population growth, infrastructure, economic activity, and job growth, which all leads to demand of property. According to the forecasts, a huge number of job creations will occur in capital cities of Australia in next few years, so it is expected that property will continue to see stable growth.
10 Properties in 10 Years is willing to work with you so you can reach your property investment goals. We are glad you went through our article. To get in touch with our reliable agents, Melbourne clients can contact us at +61 452 238 490 or email us a message at [email protected].
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