Even though property investors have returned to the market strongly in recent months, We Find Houses Director Paul Wilson says, the true property investor has been there all along, because the fundamental principals of property investment in Australia do not change.
Recent statistics from one of Australia’s largest mortgage groups AFG indicates investors have returned in force to Australia’s major capital cities with more than one-third of home loans sourced for investment purposes.
The AFG Mortgage Index, released last week (10 March 2010), showed the proportion of loans to investors rose to 34.1 per cent of all mortgages in February, up from 27.1 per cent in August and it is at its highest level of investor interest in the four-year history of the index.
Another mortgage broker, Mortgage Choice, also noted a fall in interest from first-home buyers. Last week it warned that more than 25 per cent of Australians looking to buy their first home in the next two years would give up if interest rates rose by two percentage points.
But interest rate changes and economic statistics aside Paul Wilson argues the fundamentals of property investment in Australia do not change.
Paul says, “Investing in property in like a horse wearing blinkers, ignoring the day to day hype and focusing on the long term finish line or goal. But it is a hard message to get across.
I have given many presentations around the country with audiences all agreeing that real estate investment must be approached from a long-term perspective, but the next comment from the audience will be about the Reserve Bank’s next interest rate movement or the effect of the upcoming election.”
Paul WilsonPaul Wilson points out, “All the successful property investors stick to their strategy regardless market fluctuations. They don’t care about global financial crises or Reserve Bank meetings or the next release of unemployment data, because ultimately these factors do not change the fundamentals of property investment.”
Paul Wilson is Managing Director of We Find Houses a specialist Australian property investment company. For more information about We Find Houses click Property Investment Australia.