Plan your market move
Knowing the way cycles work means you’ll have a better understanding of when’s the ...
Knowing the way cycles work means you’ll have a better understanding of when’s the right time to buy or sell your investment property.
The reverse also applies. Once the construction is completed or the mining contract ends workers will move away meaning demand for your property will then decrease.
Low interest rates are one of the key influences on real estate market activity and also on house prices.
When borrowing costs are lower the more property investors will be looking to buy. The reverse also applies.
Apart from lower interest rates and borrowing costs, other factors affecting property investor movements include the overall state of the economy and the strength of the job market.
Even one off incentives, such as first home buyer grants, cause a flow on effect to the property investment market.
Staying informed, learning whatever you can and understanding your local property market are the best ways to try and safeguard your property investment.
Australia’s such a vast continent that there are many different markets with property trends to consider in various states and territories.
Overall, however, the consensus is national property prices generally trend upwards, despite various smaller downward movements along the way.
Australian home prices typically double in value approximately every decade.
Tapping into what affects price movements arms you with better knowledge of how your investment property market value is tracking.
Supply and demand
The stronger the demand, the more likely property prices will move upwards. Take for example a new development being built or a new mining contract in a certain area. Key projects like this mean more workers will move to an area and rent for the duration of their contract leaving you in a strong negotiating position to increase rent.