{"id":319,"date":"2021-07-22T17:47:39","date_gmt":"2021-07-22T17:47:39","guid":{"rendered":"https:\/\/swellinvestor.com.au\/?p=319"},"modified":"2022-12-13T11:50:26","modified_gmt":"2022-12-13T11:50:26","slug":"previous-entry-3","status":"publish","type":"post","link":"https:\/\/swellinvestor.com.au\/index.php\/2021\/07\/22\/previous-entry-3\/","title":{"rendered":"Supply and demand: why 2023 is the right time to invest in property"},"content":{"rendered":"\r\n

If you want to invest in real estate in Australia, now is the right time! But you\u2019ve probably heard some conflicting information about the current atmosphere in the property market, so I wanted to share how I see the current situation.<\/span><\/p>\r\n

There\u2019s a lot of talk about the current market sentiment in Australia and what it will mean for 2023. If you go online, visit any news website, or turn on the TV, you\u2019ll see a lot of negativity about the economy in general, but particularly about the Australian property market. There is, overall, a high level of pessimism in the mainstream media about the economic state of not only Australia but the world.<\/span><\/p>\r\n

There are some very valid points to consider \u2013 there\u2019s the war in Ukrain, economic recovery after the pandemic, and in Australia, the highest inflation level since 1990 (source<\/a><\/span>:<\/span> Australia\u2019s inflation hits 7.3%, the highest level since 1990, with interest rates now likely higher for longer<\/span>).<\/span><\/p>\r\n

But there are still positives to be found.<\/span><\/p>\r\n

Many of the experts and people who have predicted property market crashes in the past are saying the same thing \u2013 the market is correcting. But some are saying property prices will drop 5-10%, while others are predicting much higher drops and even going as far as warning of a worst-case scenario, 50% decline.\u00a0<\/span><\/p>\r\n

I do not buy into any of that.<\/strong><\/p>\r\n

I\u2019ve always been a huge believer in supply and demand when it comes to Australian property. And demand for property in Australia continues to be very, very high.<\/span><\/p>\r\n

You can never truly predict the bottom of the market, which is why I say that if you want to invest in real estate, it\u2019s always a good time to buy property. Whether the market is declining or appreciating, there\u2019s always good buying to be had \u2013 you just need to know where to look.<\/span><\/p>\r\n

So, let\u2019s look at some positives of the current market.<\/span><\/p>\r\n

    \r\n
  1. \u00a0 \u00a0 <\/span>Rental demand is currently the highest it has ever been, particularly in Western Australia and Queensland, where the demand is unprecedented. You only have to jump onto a real estate website and check out the prices of rentals to see this demand in action.<\/span><\/li>\r\n
  2. \u00a0 \u00a0 <\/span>Vacancy rates in Queensland and Western Australia are fast-approaching all-time lows, and that\u2019s before we begin welcoming more skilled migrants and international students back into the country<\/a><\/span>\u00a0<\/span>.<\/span><\/li>\r\n
  3. \u00a0 \u00a0 <\/span>This demand for rentals is not going anywhere! In fact, it is set to increase dramatically over the coming years. When you think about the current demand, the stock currently available for people to rent, and the several hundred thousand skilled migrants and international students planning to enter the country, this rental squeeze is only going to increase.<\/span><\/li>\r\n<\/ol>\r\n

    These three reasons alone make right now a great time to invest; but if you\u2019re thinking about investing in a newly built property, or a house and land package, there are some additional benefits:<\/span><\/p>\r\n

      \r\n
    1. \u00a0 \u00a0 <\/span>Your property will be in higher demand than older, established properties. Renters like houses that are new, high quality, clean, and don\u2019t need maintenance \u2013 all of which you can find in a new build. In a market where rentals are already attracting a high price, you can ask for a premium for your new property.<\/span><\/li>\r\n
    2. \u00a0 \u00a0 <\/span>You\u2019ll spend less on maintenance and warranties in the coming years than if you buy an established property, which will allow you to maximise earnings from your rental.<\/span><\/li>\r\n
    3. \u00a0 \u00a0 <\/span>Construction prices are beginning to stabilise and price rises have stopped, making new builds a value-packed option. I\u2019ve even heard of instances where some builders are offering discounts to secure business, as the market becomes more competitive again.<\/span><\/li>\r\n<\/ol>\r\n

      Don\u2019t forget that it takes time to find the right land, build your property, put it on the market, and find the right tenants \u2013 so now is the time to start looking if you want to invest!<\/span><\/p>\r\n

      Despite what you may see in the media, there are a lot of positives in the market.<\/span><\/p>\r\n

      You do still have to tread carefully; I don\u2019t want you to enter real estate blindly. But it\u2019s certainly not a time to be put off investing. In fact, it\u2019s a time to dive right in, do a bit of research, and<\/span> speak to somebody that has experience<\/span><\/a>, so you can get a clear picture of where the market is at, and make an informed decision from there.<\/span><\/p>\r\n","protected":false},"excerpt":{"rendered":"

      Many of the experts and people who have predicted property market crashes in the past are saying the same thing \u2013 the market is correcting. But some are saying property prices will drop 5-10%, while others are predicting much higher drops and even going as far as warning of a worst-case scenario, 50% decline.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":954,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-investing-101"],"acf":[],"_links":{"self":[{"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/posts\/319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=319"}],"version-history":[{"count":3,"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/posts\/319\/revisions"}],"predecessor-version":[{"id":955,"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/posts\/319\/revisions\/955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/media\/954"}],"wp:attachment":[{"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swellinvestor.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}