5 Reasons why you should invest in property in 2024
5 Reasons why you should invest in property in 2024
The Australian property market has been around for a while and has seen its ups and downs, but overall, it’s known for growing steadily. Even with recent bumps in the road, property values generally trend upwards thanks to Australia’s strong economy. This trend is especially true in big cities and areas with lots of jobs, attracting both Aussies and investors from overseas.
So, how does real estate stack up against other investments? Well, Australian homes have consistently beaten out things like stocks over the past two decades. Why?
Overview of the australian real estate market
Australians tend to like owning their own place over riskier options. Plus, a big chunk of Australians choose to live in the homes they buy, creating a stable foundation for the market. This reduces the risk you see with speculative investing, where people buy and sell properties quickly to make a profit.
The size of the Australian market is another reason to take notice – it’s worth a whopping $9.5 trillion! Even better, Australians don’t carry a ton of debt when it comes to property ownership, which shows a healthy and secure market. This security is bolstered by the fact that around 70% of Australian properties are owner-occupied. This high rate creates a consistent demand for homes, making the market less likely to experience sudden swings.
The rental market is another bright spot. Rents are steadily on the rise, outpacing inflation. This growth is fueled by Australia’s growing population, with more and more people moving to cities.
So how will you benefit from investing in real estate?
Benefits of investing in Australian real estate in 2024
Stability you can count on
Building wealth over time
Rental income to boost your bottom line
Tax perks to make it even more appealing
Leverage
One of the biggest advantages of real estate investing is something called leverage. In Australia, banks often lend up to 80% of a property’s value, sometimes even more. This means you can buy a more expensive property with a smaller down payment. This leverage can significantly boost your potential return on investment because you’re making gains on the entire property value, not just the amount you put down initially.
So, Australian real estate sounds pretty good, right? Well, like any investment, it’s not without its challenges.
Risks and challenges in property investment
Coming up with the cash
The market can shift
Not exactly instant cash
Being a landlord can be a job
Managing a rental property can be time-consuming and cost some money too. You’ll need to find tenants, screen them carefully, deal with lease agreements, keep the place in good shape, and follow all the rules and regulations. These management headaches can eat into your profits, especially if you don’t have a system in place or try to do it all yourself.
Remember, these are all important factors to consider when weighing the risks and rewards of property investment. So getting the right approach is very important.
Strategic considerations for property investors
Location analysis
Choosing your property wisely
Thinking long term
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Trends in Australian real estate market
A few key things are shaping the market right now. First, there are interest rates. Historically low rates have made borrowing money cheaper, which makes buying a property more attractive. Another factor is population growth, especially in big cities. More people means more demand for places to live, which typically drives prices up. However, it’s not just a free-for-all. The government also plays a role with policies like grants for first-time buyers or rules on foreign investment. These policies aim to keep things stable and avoid a situation where prices get out of control, particularly in hot city markets.
One thing that’s likely to stick around is strong demand in major cities. Australia’s big cities offer a stable economy and a great quality of life, which continues to be a magnet for people moving from both within Australia and overseas.
Another interesting trend is the potential shift towards suburban and regional living. The rise of remote work, thanks in part to the COVID-19 pandemic, might lead people to move out of city centers. This could mean more demand for houses in suburbs and regional areas, potentially pushing prices up in those locations.
Finally, technology is becoming increasingly important in real estate. Virtual tours, online transactions, and even real estate-focused financial technology (fintech) are all becoming more common. So, get ready for a more tech-driven experience when it comes to buying and selling property.
The real estate landscape can change quickly, so it’s always a good idea to do your own research and stay informed before making any big decisions.
Conclusion
WHAT OUR CLIENTS THINK OF US
Gemma Kim2024-04-04We worked with TIA to purchase our first investment property. We were a bit nervous to take the leap initially. However, the team were so helpful and supportive throughout the whole process. The process was clear and informative at every step. The team were readily available to answer questions. Thanks to the team and their expertise we have walked away with an incredible investment property which is already showing signs of return and growth after a very short period of time. We have full confidence in TIA and we look forward to working with them again for the next investment opportunity.
Yechan Kim2024-04-04Amazing service and attention to detail from the entire team. We managed to secure a fantastic investment property as a great price. The research, information, communication is levels above other buyer's agents. Will be coming back for 2nd and 3rd properties.
Noah Chen2024-04-04Absolutely elated to choose The Investors Agency as my buyers agent. I have bought 2 properties with The Investors Agency, first one with Bobby in 2020 and second time with Mitch & Mike in 2024. I came back because of the strong results with my first property and also the service the team provided. TIA always made me feel comfortable with decisions and always informed and work hard to get the best deal which suit our investment needs. Their process and technology is top-notch and makes the investment property purchasing journey very stress free all the way to post-settlement. I found the value of TIA as my buyers agent through off market deals, time-savings, a deep understanding of growing markets and the detail of property inspections/information for an interstate property. I will definitely recommend building your investment property portfolio with TIA as it’s been a great journey for me.
Eric Marchant2024-03-26The Agency gives solid financial advice and backs it up with the support needed to implement it
Noa Lamm2024-03-16We're thrilled to share our positive experience with The Investors Agency. When we were searching for an investment property in Perth, they proved to be the perfect partner for us. From the outset, The Investors Agency demonstrated professionalism, attentiveness, and a deep understanding of the real estate market. They listened carefully to our investment goals and worked tirelessly to find us a property that aligned perfectly with our objectives. Throughout the process, The Investors Agency was incredibly responsive and organized, making the entire purchasing experience smooth and efficient. Their attention to detail and commitment to excellence were evident every step of the way, making us feel confident and supported throughout the journey. Thanks to The Investors Agency's expertise and dedication, we were able to secure a beautiful property that has already shown promising signs of appreciation in value. Their insight into market trends and investment opportunities was invaluable, and we couldn't be happier with the outcome. We highly recommend The Investors Agency to anyone looking to invest in real estate. Their professionalism, integrity, and exceptional service make them a standout choice in the industry. Thank you, The Investors Agency, for helping us achieve our investment goals in Perth.
Tiyanah Doyle2024-03-16I had such a great experience working with the investors agency, Mitch made my first investment property purchase so easy. Mitch had really great communication and was always available via text/call/email. As it was my first property purchase I felt supported and guided by their expertise and everything is presented in a user friendly way. I would definitely recommend the investors agency and would use them again. They also mortgage broker who is excellent.
Natasa Igrac2024-03-11We had a great experience working with the TIA team in helping us secure our 1st investment property. It was a very smooth process! The team was always there to answer all questions that we had along the way. We are definitely looking forward for our next investment property with them and we can't recommend them highly enough to anyone looking for a knowledgeable and supportive buyers agency.
Greg Kite2024-02-29We have just settled our first property with the guidance of The Investors Agency. The process was smooth and transparent from our initial enquiry to final handover. The Investors Agency made recommendations when required and everyone involved was professional and valuable. A big thanks to James and the whole TIA team..... Where are buying the next one guys?
Eva den Haan2024-02-28The Investors Agency has been super helpful with the purchase of my first investment property. They did all the hard work and communicated with all relevant parties on my behalf, while still making sure I was constantly up to date with the latest developments. The whole process felt very personal and I would highly recommend the team to anyone looking to buy an investment property.
Vicki Milekovic2024-02-26We’ve had such a great experience! From start to finish the investors agency has been so helpful and responsive. They have gotten us exactly where we want to be and made the process so easy. We look forward to our ongoing investing journey with them!Google rating score: 5.0 of 5, based on 115 reviews
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