Contrary to what the media says, it’s not all doom and gloom for the housing market over the coming years.
I read an article the other day titled ‘Grim outlook for residential property markets across Australia’.
This clearly sensationalist article proclaimed deteriorating property prices across the nation driven by apartment oversupply, weakened investor demand and lower population growth.
Now, the article was not unfounded – with highlights taken from the recently released BIS Shrapnel Residential Property Prospects report - but reported almost solely the negatives.
And yes I agree there is oversupply in certain areas – particularly apartments in the capital cities of Brisbane and Melbourne – but that doesn’t mean there aren’t investment opportunities still available.
There are always markets within markets, and every day we help investors find and secure investments properties that are making a positive contribution to their wealth creation goals.
Articles like the one mentioned above only seek to negatively impact on the confidence of the market, and to what purpose?
The BIS Shrapnel report stated that Adelaide and Darwin are leading the price falls with the median house price forecast to drop by 2 per cent by June 2019.
Sydney, Melbourne and Perth are expected to drop by 1 per cent over the next three years.
But a drop by 1 or 2 per cent does not equal a property crash.
In places like Sydney and Melbourne, demand is still very strong and in Sydney particularly – supply has yet to catch up to demand.
The property cycle is called thus because the market moves in a cycle. There are high points and low points that repeat over a period of time.
It’s not possible to permanently sustain the growth seen in the last two years and it has always been the reality that prices at some point would plateau.
I have stated time and time again – you can’t let media messages rock your confidence or let an uncertain future stop you from acting now.
Take what you read with a pinch of salt and make sure you get the whole story before you start forming opinions and taking (or not taking) action.
The BIS Shrapnel report also stated that there are still areas primed for growth, including the capital cities of Brisbane and Hobart where there is high demand for houses.
The median house price in these areas is expected to rise by 7 per cent to June 2019.
Canberra’s outlook is also positive, with the median house price set to grow 6 per cent over the next three years.
Interest rates remain at an all time low, contributing significantly to demand as well.
There are always going to be people telling you why you shouldn’t do something but you need to weigh up the pros and cons for yourself.
Don’t let the media derail your property investment journey; wealth is only built by taking action. Taking no action at all usually moves you further away from your goals, not towards them.
There are opportunities in every situation, good or bad, and you need to maximise opportunities to get where you want to be.
Take a hold of an opportunity right now and book in for a complimentary strategy consultation with me, Paul from We Find Houses, to discover how you can maximise your property investment journey.
Call 1800 600 890 or email firstname.lastname@example.org