Why You Should Get Started in Real Estate this Year
Should you get started in Real Estate investment in 2021?
The short answer to this question is Yes, Yes you should, but you need to buy the right property. Getting started in real estate now would be a good decision.
In case you have been living under a rock; the real estate market in Australia is cranking. There is a huge demand for properties, and this is driving prices up.
There is an old Chinese proverb which basically states that ‘the best time to plant a tree was 20 years ago, and the second-best time is now’. If you are wanting success and growth in the future, then the best time to act is now. Time in the market is a big factor to many real estate success stories; and with real estate generally being a longer time frame investment vehicle, time in the market is important.
Importantly, it must be stated here, that you need to buy the right property. Regardless of how good the real estate market is, you must always purchase the right investment property. This will be discussed further in our next blog.
Real estate in Australia now
When the market starts to rise the way, it is here in Australia now, it can be like a tide in a harbour, where all the boats rise. But just because the market has given a property some good growth, does not mean it will stay that way. A good real estate market can often force purchasers to ‘act quickly to avoid missing out’ or rush into a purchasing decision without adequate research and planning, and this can be a big mistake.
There are properties that can make you good capital returns, as well as yield and income return, which aren’t dependent on the market. If you purchase one of these properties, then the additional growth due to the success of the market can be a great bonus, not a requirement for investment success.
Fundamentally if you are looking at a real estate investment or getting started in real estate now, if all of the personal circumstances match up, then 2021 would be a great time. Your investment property will always need to be tailored to suit your individual circumstances.
If you’ve been following the latest property news Australia or keeping tabs on real estate news Australia, you’ll be well aware of just how hot the Australian market is at the current moment. This does not mean that it will stay that way, but if you have a good real estate investment, it should be a good investment property regardless of the current market heat.
Are house prices rising in Melbourne or Australia this 2021?
Are housing prices in Melbourne rising and what are the Melbourne property market predictions? If you follow us on Facebook or LinkedIn you must be well aware of how the Melbourne property market is travelling.
Melbourne initially had a pretty hard time during COVID-19. Some outbreaks forced the State into strict lockdowns, and this had a negative effect on the market. At this stage of COVID-19, there were fears for the market and the future prices of Melbourne property. However, Melbourne’s property prices have staged a comeback recently, and are now reporting a Median House price of $936,073 which has surpassed pre-pandemic levels. Melbourne house prices are definitely on the rise, and in fact the Melbourne Unit prices have also risen recently to a current median unit price of $569,677.
Australian Real Estate Price Predictions
What will happen to the Melbourne and Australia property prices is always a difficult question to answer, and as we do not have a Crystal ball, any predictions made are exactly that, predictions. At New Property Australia we fundamentally believe in the purchasing the right property. The right property should be a good investment regardless of short-term price fluctuations.
Real Estate Markets, like all markets, are subject to the demand and supply. It is the fundamental factors of demand and supply which should determine the price and which direction the market goes. When there is greater demand than there is supply, the market will rise. When there is greater supply than demand, the market should fall. Currently there has proven to be an increase in demand in the Melbourne, and indeed most of the Australian, real estate markets. This increase in demand without an increase in supply has led to an increase in prices. Which way the demand goes over the next few months and years will be difficult to tell. There are factors at play right now which can have a great effect on the property market, which are really an unknown.
Covid 19 is a very difficult phenomenon to make any predictions on or about. There were numerous so-called ‘experts’ and even large banking institutions who make dire predictions about the real estate market in Australia, which proved to be absolutely incorrect. What we do fundamentally believe is that there are property investments that we are putting together right now, which will continue to be sound investments. Melbourne property market predictions are difficult, but if you have a sound investment you should be able to rest comfortably.
Is it a buyer’s or seller’s market 2020?
Ok, is it a buyer’s or seller’s market? Before we get going here, it is best that we first define what a Buyer’s Market is and what a Seller’s Market is. The concepts of buyer’s and seller’s market are based around the concepts of demand and supply that we touched on above.
A buyer’s market is where real estate is more affordable. This is due to the number of supply (sellers or vendors) being in excess of demand (buyers). So, when the supply is greater than the demand you will see lower prices or a buyer’s market. In a buyer’s market properties tend to sell slower (increased time on the market), and for less.
A seller’s market is the opposite of a buyer’s market and is where the demand (buyers) exceeds the supply (vendors or sellers). So, when the demand is greater than the supply, the prices go up, and this is seen as a seller’s market. In a seller’s market properties tend to sell quickly (less time on market) and for more favorable prices.
Currently, in the marketplace across the majority of Australia we are seeing an increase in the demand from buyer’s looking to purchase properties, and the supply of properties for sale struggling to keep up. This is therefore what is seen as a seller’s market.
The market across Australia is made up of a number of different sub-markets. These sub-markets can be geographical, urban (capital cities verses regional areas), and also residential property types (i.e. apartments, houses etc.), just to name a few. At any one time it is a bit unusual to have every sub-market of the Australian property market in sync. However, as a general overview, at the current time, it is fair to say that the market is more towards a seller’s market.
There has been increased demand for the new property market particularly. This has been in part due to some government stimulation aimed at getting owner-occupiers and first home buyers more active. This has put definite noticeable pressure on the land availability in certain areas leading to a seller’s market in many geographical areas for land.
Property investment and getting started in real estate now is a good decision if all the fundamental personal circumstances are right.
There is a huge demand for housing investments in Australia at the current time, and Real Estate News Australia is reporting this many articles.
Your investment property needs to be a sound investment which has had adequate research and due diligence undertaken for both your personal circumstances the property itself. Australia’s property latest news will be giving some exciting statistics as to the current state of the market. But it is important to remember that property latest news is only a small part of your investment strategy or decision to purchase a home to live in.
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