Are you ready to capitalise on current conditions as the stars line up for investors?

Property investors now account for almost 30% of all property sales in Australia, giving a clear signal to others who are considering this strategy as a preferred route towards wealth creation.

Excellent news abounds for investors as the inflation rate falls, interest rates remain on hold, and house prices settle after a year that has seen capital city property prices increase by between 10% and 15% (depending on the data source).

The good news on inflation and easing house prices means that the Reserve Bank left the cash rate at 4.5% at their July meeting. Many people are now predicting that we won’t see a change in interest rates this year, and some even expect that the next move will be downwards.

In terms of house prices, the past 12 months has seen home prices soar as economic conditions improved, and as property investors piled into the market in increasing numbers. The ups and downs in the share market and worries about Europe have been key reasons why more investors are choosing property as the safest place for their money.

While Australian Property Monitors reported a 2.45% lift in prices in the June quarter, for an annual increase of 15.6% in total, the latest RP Data/Rismark figures show flat prices for the quarter, but still over 10% annual growth.

So what should you make of all this? The overall economy looks to be stable, under control, and positive. Regarding house prices, the reduction in the numbers of first home buyers and overseas buyers (due to changes in government policy) means that some of the heat has gone out of the market, opening the door for investors to capitalise on stable house prices and interest rates that are also stable and still relatively low.

What should you be doing in these circumstances? In the next 12 months, we expect that there will be over 500,000 property sales in Australia. At current levels, about 250,000 of these will be to owner-occupiers, and about 150,000 to investors.

In our view the sheer weight of numbers of sales going to property investors must be a clear signal that this is where the smart money is moving. Property has performed exceptionally well through the worst of times, and most experts forecast increases of about 8% in the year ahead. The 16% capital city growth and 28% in Melbourne are rates of increases that simply can’t be maintained!

Where will you be on your investment journey a year from now? Will you have joined the next 150,000 owners of new investment properties, or will you still be waiting for the timing and conditions to improve?

As we have said before, “success leaves clues,” and the volatile share market, disappointing superannuation returns and uncertainty overseas make Australian property a sound investment.

If you have some equity in your family home, you could join those who are buying property as the asset of choice for their portfolios.

Simply call one of our team on 1300 850 318 and we will be help you to assess your current financial situation and objectives and help you to develop a strategy that enables you to become a property investor in your own right. You will join the 150,000 others who will make the same journey in the year ahead.

McCarthy Group provides professional property investment advice on strategies like negative gearing.  Find all the investment properties hot spots and discover why property investing is a stable option.  For property investment Sydney, contact us now.