Despite such concerns, Ben Kingsley, Chair of the Property Investment Professionals of Australia (PIPA), says there are still plenty of opportunities to be found for investors who perform their due diligence and have a long-term mindset when it comes to property investment.
“The long-term fundamentals of well-selected property remain strong. Investors should avoid making any rash decisions and keep focused on their long-term investment goals,” he said.
Kingsley said investors need to think out of the box in order to overcome affordability issues and avoid pockets of oversupply. “With more potential downside risk in our major markets, investors need to be strategic about their investment approach. The advice of qualified professionals has never been more important.”
Listed here are PIPA’s top tips for property investment success in 2017:
Plan for higher borrowing costs: After months of record lows, home loan costs are starting to shoot up once again. In light of this, aspiring investors should factor higher interest rates into their cash flow planning.
Join forces: According to analysts, Australia’s largest capital cities are unlikely to see a dramatic reversal in property values. By joining forces with other investors, prospective investors can overcome affordability issues and get a leg up the property ladder.
Think outside the square: Investors should not be limited by geographic or mindset constraints. “While it may be tempting to buy an inner-city terrace, compelling investment returns can be found across a range of markets, often with much lower price tags and compelling yields.”
Tread carefully on inner city apartments: Record levels of new construction have created a strong supply of new CBD and inner city ring apartments in Brisbane, Sydney, and Melbourne. Hence, investors should exercise great caution when considering a purchase in any of these locations.
Keep a cool head: Don’t allow doomsday predictions or media hysteria to cloud your judgement. Instead, remain focused on your long-term wealth aspirations and seek out properties that are aligned with your financial goals.
Seek professional advice: It pays to seek out the assistance of experts. “Build a strong support team, including a Qualified Property Investment Adviser (QPIA), mortgage broker and buyer’s agent” to ensure success.