Q&A: When Is The Right Time To Invest In Sydney Property?
You’ve worked hard for years and now you have a bit of money saved up for investments. Like most Australians, your top of mind investment option is in real estate. This is not at all surprising as it is one of the best ways to secure your financial wealth.
Good real estate investments have yielded high returns to most people in the past. You want to find the right moment to dive in and get into the game. But with current property prices, you ask yourself: is it wise to invest in Sydney property now?
Q: Real estate prices are on an all-time high now. Has the market already peaked?
Property prices remain consistently high in Sydney and other major cities in Australia. While it is difficult to say if the housing market has already peaked or is approaching a peak, the issue is not always if a property has reached the highest price it could ever get.
When you invest in real estate, you are investing in its future price. This means you should choose a property that is more likely to increase in value over the longer term. Given the strong economy and sustained population growth in Sydney, we can expect that real estate will have a strong foothold in the years to come.
Q: I have $100,000 saved up. Should I invest in Sydney property?
Real estate investments can increase your wealth and secure your financial future, but not instantly. Think it as a medium to longer term type of investment, so you’ll want to make sure that you can afford to maintain your mortgage repayments over the long term.
Having $100,000 in the bank doesn’t necessarily mean you can afford to invest. The key is cash flow. Ask your financial adviser if you can safely afford an investment given your current financial status.
Do not make the mistake of biting off more than you can chew a.k.a. investing too closely to your limit. You may find yourself having to sell your investment property prematurely if you encounter any financial stress.
Q: Should I read up on real estate investments before I buy anything?
I always tell my clients that before they delve into property investments, they have to be well-informed and ready before taking the plunge. I assist them in checking properties are available for investments in the area and tell them which are considered superior to others. I also brief them on the average rents, property values, demographics and suburb reports.
This way you can assess if the area you are thinking of investing in has the right potential for growth. If you invest you want returns in the future.
Q: The interest rates are low. Is it a good time to invest in Sydney property?
The ideal conditions for investing in property will be when both housing prices and interest rates are at a low. Currently, the real estate market prices are high but the interest rate is low. This has enabled more Australians to enter the property market despite higher prices.
If you have a strong financial portfolio and the cash flow to afford the mortgage, this can be a great time to invest in property. You can take advantage of the low interest rates to find a suitable property to put your money into.
Finding the right time to invest in Sydney property varies from one person to another as there is no such thing as one-size-fits-all. Property investing depends on multiple factors such as your reason for investing, your financial capacity, the local market value, population movements, interest rates, and much more.