Are you kicking yourself that you didn’t take the step and purchase an investment property last year?
Perhaps you feel you have missed out on property price growth that others have experienced in the past two years.
I have some good news for you – there are still opportunities, but they aren’t sitting there waiting for you!
Start With the End in Mind
The first questions you should be asking yourself is:
Why do I want to buy an investment property?
What are your goals for 2022?
What do you want to achieve in the next 5 or 10 years?
I get a huge kick out of helping people define their goals and then purchase the right property for them.
Sometimes it is years down the track, but I hear from clients saying purchasing an investment has made an enormous difference to their family and future opportunities.
Buying an investment property is a huge step, and it must be for the right reasons.
You shouldn’t buy when:
- You are afraid of missing out
- You are rushing into your decision based on emotion
- Your friends have just bought their first or fourth (!) investment property, and you think you should too…
It is time to buy when:
- You have a positive mindset
- You are ready to commit to a long-term investment
- Prepared to make time and financial sacrifices to reach your goal
- You are ready to take on the responsibility
It is OK to have reservations but if you can tick the four boxes above it’s time to take the first step.
Why 2022 is a Good Year to Buy Property
This year will likely return to ‘normal market conditions’ or a segmented market. This is where property price growth won’t be across the nation (like we have witnessed in the past 18 months), but it will be more about finding the right area to see a great return.
The locations tipped for growth will be those areas that are affordable, close to transportation and employment hubs. The growth opportunities will be in response to local economic conditions – this is why research and local knowledge are necessary.
With changing conditions, it still comes down to buying in the right location, with the right builder and the right style of home.
Now more than ever, it is essential that you have a team of independent experts to ensure you will make the best purchase available for your budget and goals.
What to watch out for in 2022:
- There has been fantastic growth over the last few years – sign me up! Just wait – stellar past growth is not always a predictor of where the market is going. Some locations might start to fade, but it is all about what is happening in the local economy.
- Increase in interest rates. This should not come as a surprise as we have had years of record low interest rates, but they are unlikely not to rise immediately or by much. So be proactive – ask your financier and check what a rise of a few percentage points would mean to your budget.
- Changes to housing policy. For years housing policies have been debated, and this year we face a federal election – both parties have yet to define their policies or outline any changes. However, it is doubtful any policy update would force investors to backdate current negative gearing arrangements. So perhaps now is a great time to secure your investment!
- The big squeeze on builders. The process of buying the right property has become even more complicated in recent months, with many builders squeezed with rising costs, staff shortages and bad weather. So unless you have a cash-strong, quality builder and a fixed-price contract, don’t sign anything.
I want to buy an investment property this year – where do I start?
Most people tend to follow the pack after prices have already risen sharply. However, the best strategy is to buy in an area with potential for future growth, which requires research beyond the vast resources offered by the internet.
So start with getting good advice based on research – with a team around you can future-proof your investment and maximise your cash flow.
At Triple Zero Property, we provide information from independent property valuers, market reports and local knowledge to determine your strategy.
We work to get the best result in a highly competitive property market at no cost to you.
Call 1300 897 000 to help you reach your property investment goals for 2022.
Buying a quality property is when you make money, not necessarily when you sell.
This content is general information only. Your situation is specific and individual; as such, you should always consult a registered and qualified professional within the particular area of advice needed.