If you are investing in the housing market vs investing in the sharemarket, make sure you are informed about the property and the market cycle. There are opportunities in the housing market when it is at the bottom of the cycle, which is where most property markets in Australia have been since 2010. If you do your research, you will find properties in the right location can sell for 5%-10% less than what they might have achieved 2 years before. On a $500,000 property this can be a big difference. With the high cost of living near the city, Western Sydney is expected to see growth in value with an increase in population and median family income.
Margaret Lomas is the Host of two weekly property investment shows on Sky News Business Channel and says she “prefers regional centres over inner-city areas and says it’s easy to buy in so-called hot spots. What is harder to achieve, she says, is buying property in ”warm spots” – areas that are yet to see price growth but are likely to. Buying well is often in the timing. Little wonder investors are trying to figure out whether specific markets have hit bottom or have further to fall.”
Interestingly in a market where many people have been waiting for the market to drop further, they could be missing out on opportunities of good value and when there is less competition from other buyers who may also be waiting longer.
If you would like to know what a property is worth, contact The Home Loan Company for a complimentary property report which will include estimated value of the property, the property’s sales history, current sales and rental history in the area.
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