2012 looks to be a positive year for property, however the question is by how much?
There are a lot of different reports and articles flowing through telling us that property prices are finally on the way up, and further rate cuts are imminent. However the doom & gloom reporters are still telling us that another GFC is just around the corner. How do you know if the time is right to invest your funds, and be able to grow your money for your family and your retirement? “Investing in shares, cash and property isn’t the same as it was 5 years ago. Back then you could invest your money in any direction and [within reason] be guaranteed to have growth in your portfolio,” commented Harry Charalambous of Plan Assist.
The RP Data – Rismark Home Value Index has released that in seasonally-adjusted terms, Australia’s capital city home values rose by 0.1% in November 2011. Whist this amount may seem very small, this increase was the first since December 2010. Rismark’s director Christopher Joyce commented that they project housing activity will rebound solidly. He said the best proxy for housing demand is the number of new home loans approved for purchasing established properties, and this has risen robustly every month since March 2010.
And whilst we all like to complain about the banks extremely large profits, and their resistance to pass on rate cuts to their customers, it is undeniable that our banks have provided a safety net for the Australian economy, which is coming out of the GFC somewhat bruised but indeed intact. With banks’ profits remaining to increase year on year, this stability should hopefully prop up the economy during these unsteady times.
After 30 consecutive months without a rate cut, the Reserve Bank’s decision to recently reduce the cash rate has also boosted confidence. When the RBA meets on February 7 a further rate cut is expected in many reports seen over the last week.
All of this leads to good news for Australian property prices. However Plan Assist’s director Harry Charalambous warns you should always have a strategy in these challenging times. “I encourage my clients to make decisions using strict criteria to reduce risks that the current climate may present. During my training I urge clients to look for property that suits their needs right now, and also in the future. In my recent training to ProfitsToShare clients I taught 3 ways to profit in today’s market, which helps give diversification in their portfolio, as well as provide additional cashflow to their current income.
Once all the planning and training is complete, to have your goals to come to fruition the most crucial step is taking massive action towards these goals. I have come across a lot of people who want to get into the market place, yet they seem to take months, sometimes years in preparation, and at the end of the day the best way to get ready to enter the market is to enter the market. The feedback from some of our most successful clients, is that having someone there guiding them through the process has given them the confidence and certainty to take that first step, knowing that they had the support where required.
Harry Charalambous provides professional property training. To enquire about his services phone Plan Assist on 1300 039 801 or email info@planassist.com.au
