What are my property investing opportunities for 2015?
When planning for the future, there is a wide array of savings and investment opportunities here in Australia. Whether investing in shares or making capital gains through property, it is important to adopt a style of wealth creation that suits each person's current situation and forward goals. Tailoring an investment strategy to your own personal status is vital.
Many Aussies have taken to property in recent years, as shown by the widespread demand in Sydney. In fact, the most recent figures from RP Data-CoreLogic showed that Sydney house prices rose by 12.4 per cent – and that's just in the last year, showing exactly how strong demand for homes is. But one area that will interest people looking at Queensland investment property is the recent past. Over the last month, Sydney's prices have stalled, with no growth or decline in the market. But at the same time, Brisbane has seen an increase in property prices.
This suggests that, as many have predicted, the Sydney market is slowing down. Meanwhile, Brisbane continues to plough ahead. Could this mean it's time to look at Queensland if investment property is your chosen path?
Growth expected in 2015
Louis Christopher from SQM Research regularly releases Boom and Bust reports in which he predicts the rises and falls in the property market. In his report from September 2014, Mr Christopher said the Brisbane market has remained nice and steady over the past two years.
While the report does not predict real estate to boom in this area, it does anticipate moderate capital growth. In the report, Mr Christopher urged people away from investment in areas with too much building activity and with rising vacancy rates. Rental yields right in the CBD might not see huge increases this year, but by searching elsewhere it may be possible to make healthy profits from your investment property.
This type of property investment strategy can be an excellent way of generating wealth, especially once the steady nature of the Brisbane market is taken into consideration.
Better safe than sorry
The heavy increases seen in other areas of Australia could see an eventual sharp fall in price. This is something that bodies like the Australian Prudential Regulatory Authority were worried about in 2014 – too many investors making the market crowded.
However, with the relative stability in Brisbane, investment in property could be an opportunity for anyone with an interest in building wealth. Getting the appropriate property coaching is an excellent way of determining if this is the right path.