Property values behave depending upon the phase of the cycle they are in. One of the truly long-standing gospels of property investment is that you should seize a deal at the right stage of the property cycle. This way, you come out paying the best price for a property deal.
At different times property prices may behave differently; sometimes they may languish well below the long-term trend, at other times shoot up a lot higher than the trend or remain closely attached to it. Careful evaluation of the property cycle then remains your first line of attack. Let me elaborate on this.
Death is not a pleasurable thought but if you have worked all your life to build an estate, you should give death some thought. The idea is not to die intestate or without having drawn up a will. I have seen various cases where those beyond the circle of spouse, siblings, children and close relatives have taken advantage in such situations. In the light of this fact, I confess liking an article by Ken Raiss on the Property Update.
My leanings towards property investment are an extension of my childhood perceptions. The way I read the world did not leave too much space for liquid assets and till today the regard for this non-volatile, “two-fold benefit” asset class has remained. This is also partly why I chose the career I am in.
Michael Yardney, while writing an article for the Property Update, talks about a few things we have already heard but the perspective is fresh and the article quite engaging nonetheless. According to him, we have just hit the expansionary stage of the property cycle and this will cause a ripple effect. To explain, property prices will grow in the inner suburbs and slowly but steadily capital growth will move outwards, ending in the growth of the outer suburbs.
Australian property market has got enough in its sails to carry you across the path of fortune. In fact, it might just be the best time to move into the market, not overcautious but hungry to an extent. This being said, you will serve yourself well if you know the pros and cons of property investment beforehand.
