Australia currently faces a chronic housing shortage which, coupled with a rapidly expanding population (through natural increase and immigration), has pushed rental vacancy rates to historic lows and put upward pressure on rents. There are simply not enough houses to go around.
An investment plan is one that works towards building your wealth and securing your financial freedom. For some, the future may seem a long way off, but the time to act is now because the future waits for no one. The housing market is generally a seven to ten year cycle: there are always highs, lows and steady patches.
The decisions you make today will determine the lifestyle choices you have in the future.
The following factors should be taken into consideration when purchasing property as an investment:
- The likely return – yield and capital growth
- Buying and selling costs
- Cost to borrow money, ie interest rates
- How attractive the property will be for likely tenants or future buyers.