How to ride the cycles like a savvy investor

12/04/2018

The news around property investing right now is not rosy. Doom and gloom abound from almost every media outlet: ‘bloodbath in the property market’, ‘yields at all-time lows’, ‘the boom is over’. 

And yet there is a breed of savvy investors that are still spending up big on property. What’s their secret? Do they have a magic ball? The answer is no, they simply know how to read the property cycle better than most and aim to invest at the bottom of the cycle.

‘With a long term view, the property cycle has observable patterns,’ said DHA’s Chief Economist Dan Carton. ‘Prices rise, fall or stablise and then they rise again. These stages of the cycle vary in length in different markets depending on a variety of factors including the macroeconomic environment. The key for an investor desiring capital growth as a part of their return expectations is to pick the bottom of the market and jump in.’

With this in mind the media would have you believe that the entire country is currently in the fall stage – or perhaps even free-fall. But that’s not entirely true.

‘Different markets across the country are rarely going to be at the same stage of the cycle at the same time,’ Mr Carton said. 'Take for example the Perth market which is coming off an extended period of low to negative growth and is now seeing the first signs that positive growth could return to the market.

’In comparison Brisbane apartments have been experienced some price corrections in the last 12 months or so due to fears of an oversupply of units in the market. 

‘This means that the Brisbane apartment markets could be at, or approaching, the bottom of the cycle. With time, it is reasonable to anticipate prices will rise. At this stage those riding the market cycles might choose to adopt a long-term hold strategy for Brisbane apartments knowing that they can buy in now and wait for the market to swing back up.’

And while the doom and gloom still abounds on the front pages there are already indicators that Brisbane is indeed on the move. Both CoreLogic and Deloitte have reported that the March quarter has seen improved job markets and an increase in migration to the southern Queensland capital.

DHA has investment opportunities available now register your interest today.

         Attention: Investment is subject to DHA’s lease terms and conditions of sale. Investors retain some responsibilities and risks,
         i.e. rent, restoration and market fluctuations. Prospective investors should seek independent advice.
        See dha.gov.au/lookforward for relevant information.

Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : mortdale , rockville , gladesville , alexandria , newtown

go back

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here