Thinking Long Term – One Of The Keys To Successful Property Investing

If you invested in property in Sydney in 2012, it has improved 85 percent to 2017. However, we also know that property can move through some cooling periods, which we are currently experiencing in Sydney and Melbourne with a 6.5 percent drop in Sydney and a 3.2 percent drop in Melbourne the past 12 months to September 2018.

This is where a long-term view of investing in property and holding for 15 – 20+ years makes so much sense as that is when you really begin to benefit from the compounding effect of property price growth.

Australians have always had a love of property and home ownership. It’s the Australian dream of owning property and if you look at our economies’ fundamentals:

  • The economy is doing well and better than most developed nations
  • Interest rates are low and unlikely to go up any time soon
  • We are creating more jobs for our fast-growing population
  • We still aren’t building enough dwellings to accommodate all the new households

We remain in very good shape, especially compared to the rest of the world.

Another factor to consider when thinking of property is that Australia isn’t one big property market, although it can be referred to this way by the media, rather it’s made of many micro property markets across each city, regional area and state. What this means is as some micro markets go through a cooling period, other markets of opportunity are created, as  currently seen in the smaller cities and regional areas.

Australians Record The Highest Median Level Of Wealth In The World

We already knew Australia is the lucky country, however a new report makes it official. The Credit Suisse Global Wealth Report 2018, which analyses the wealth held by five billion adults, found that Australian adults’ median or middle level of wealth (assets minus debts) is USD$191,453, making us the highest median wealth country in the world.

The drivers for our number one ranking were property and superannuation. The report found that the average wealth of an Australian adult was USD $411,060 and had grown 12% per annum since 2000 thanks to increasing property prices and superannuation.

Approximately 60% of our median wealth was due to property ownership, the rest was made up from our superannuation holdings.

Given all of this, if you are interested in focusing in on property investing and capitalising on these current favourable market forces, regions and opportunities, be sure to give the team at Plan Assist a call.

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