Reports in some sections of the media suggest that the property market may be softening in 2025, so does that mean it is a good or a bad time to invest in property?
Here is a list of the reasons why experienced investors see this year as a prime buying opportunity, as long as the property is in the right location:
- Supply-Demand Imbalance: There is a well-documented housing shortage due to a significant imbalance between the supply of available properties and the demand from buyers and renters. The shortfall in housing supply relative to demand is a critical factor driving property prices upwards, and savvy investors can capitalise on this trend by acquiring properties before prices escalate further.
- High Rents: Weekly rents reached new highs in 2024 as a result of the extremely low vacancy rates across the country. For property investors, this translates to higher rental yields. Purchasing a property now allows you to benefit from these elevated rental incomes, providing a steady cash flow and enhancing your investment returns.
- Potential Interest Rate Drops: There is a strong likelihood that interest rates will decrease this year, with many economists predicting that the first cut will be announced at the February meeting of the RBA Board. Lower interest rates mean reduced borrowing costs and increased property affordability, creating favourable conditions for property buyers. Savvy investors can get ahead of the market by acting now rather than waiting until the rates go down.
With all of these compelling reasons, along with the outstanding capital growth that has been seen in key markets over the last 12 months, investing in property right now is a smart move for anyone wanting to expand on their portfolio or get into investment for the first time.
Phil is a property investment specialist with Your Property People, a local Central Coast business who specialise in helping people invest in high-performing properties across Australia.
http://yourpropertypeople.com.auyourpropertypeople.com.au
