- Posted By Rebecca Bell
If you are influenced by popular opinion, then you’ll probably be sitting on the real estate side-lines right now, at least as far as property investment is concerned. General sentiment is that the Australian property market is ‘crumbling around our ears’ or ‘falling at record levels’. Such emotional language in the media is designed to do only one thing – fan our fears.
The reality is that in some major capital cities home prices have experienced consecutive monthly falls for almost a year and lending conditions have become very difficult as a result. Attendance is down, so clearing rates are at an all-time low, and the length of time properties stay on the market is steadily rising. So yes, all of that is happening, but your response comes down to the perspective you choose going forward.
It is human nature to err towards secure and safe choices, but property investment is about risk management. You need to decide if you are one of the few investors brave enough to prioritise opportunity over safety, in a climate of fear and uncertainty.
The cyclical nature of property markets and the general stability of the Australian property market, means that the upward climb out of the trough is inevitable. Your reward could be delivered tenfold in the form of considerable gains when the upturn arrives, and arrive it certainly will. The question is; will you pull away from the masses and steel yourself for some contrarian investing (where investors purposefully go against prevailing market trends by selling when others are buying, and buying when most investors are selling).
So, what and where are the current opportunities and how can you maximise them?
Better lending options
No that’s not a typo. It’s true that lending conditions are particularly tough right now, but it’s also true that the banks are going through a very challenging time with the Banking Royal Commission putting customer confidence at an all-time low. As a result, private lenders are working much harder at putting together great deals for investors, utilising their flexibility to be able to customise lending solutions and match the right borrowers with the finance best suited to their choices.
While our market in Broome, along with the rest of the country is so unpredictable and we haven’t yet reached our tourism season you may be in the position to secure a great deal now before there are more buyers to compete with.
Some sellers have been holding on for the last few years in the hope that the market changes but are now just wanting to move on and sell as quickly as possible. This presents great opportunity if you’re ready to move as soon as you find something.
As always with property investment, do your research, know what your long-term property investment goals are, and focus on choices that will help you to achieve those goals. Whatever is happening in the current climate should be considered, but it shouldn’t motivate your decisions entirely.
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The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.