The Science Behind Successful Property Investing

Date: 01/12/2010

Hindsight is also sometimes known as the 'if onlys'. If only I had bought that house when mortgage interest rates were 4%. If only I had bought my first investment property when the property market was at its lowest. If only I had planned better for retirement...

For those who do not have any experience or training in investing, simply dreaming of owning a new home or investment property may be as close as they have ever been. If you have an interest in investing, don't wait too long. If you consider the following points, the best time to invest could be right now!

The cash rate is still well below where it peaked in March 2008 keeping mortgage interest rates at a familiar and manageable level.
Rental vacancy rates are still in single figures across most of Australia which means there is still a shortage of properties available to rent. A great time to become a landlord!
Property values have risen in most states of Australia with talk of upward movement continuing across most of Australia

With these points in mind, perhaps you could use the following hindsight as one of your research tools to avoid the 'if onlys'? Notice that the cash rate has stayed below 8% for over 18 years and we are still in the lowest range since June 1994. To see if you can afford an investment property, try this Investment Property Calculator.

We all know that property prices HAVE increased in value over the last 20 years. If this is an indication of things to come, it appears that we have good conditions to be considering buying a home or investment property. If the pension is many years away for you and you are concerned about trying to survive on the age pension when you retire (currently $329.20 per week for a single person or $496.30 per week for a couple), then it may be time to start looking into alternate strategies for wealth creation.

Property investing has been seen as a lower risk wealth creation strategy than some other options, although it is important to remember that successful property investment does not happen by accident or overnight. Successful investors typically have the foresight to:

See a need (and those pension rates are certainly enough to create a need).
Educate themselves (through research and by surrounding themselves with like minded people who understand what they are trying to achieve. These people may or may not be your friends and family.)
Take action. So you see, hindsight might actually help you create your new future!

Property investment could be the tool to pay off your home loan in 7-10 years and plan a retirement that suits your needs and lifestyle. Mortgage House Private Clients have the tools and know-how to show you how to turn your dream into reality.

Call 136 HOUSE (136 468) for a consultation to start you on the road to your pension free future and to claim your future wealth.