Rich Opportunities Awaiting Investors

Written by Paul Kounnas Wednesday, 09 November 2011

“A perfect storm” is how some knowledgeable investors are describing the current property market as it goes through a cyclical phase of correction and stabilisation.

I have watched the industry’s highs and lows for many years and recognise that times such as these can provide excellent opportunities for the astute investor.

With prices and interest rates at an affordable level and rental vacancy rates almost at crisis point, the market entry costs are affordable, there are plenty of tenants and all of the experts are predicting rents will continue to rise yearly, possibly for as long as 10 years.

Unfortunately, a lot of people who are interested in buying investment properties don’t act as quickly as they should. They keep putting it off, using the excuse they are looking for the perfect property, or that they are waiting for the market to bottom, and then they regret it.

If you have ever heard anyone say – “I should have bought that back then” – well right now is BACK THEN.

Australia has a national housing shortfall in the order of a quarter of a million properties and that won’t be made up overnight.

The bottom line is that this housing shortage means the rental market will continue to show strong returns for smart investors.

Importantly, there are many motivated vendors who have to sell and in a quiet buyers market that is a rare set of circumstances.

It’s not a case of jumping in to buy the first affordable property that comes along.

Anyone wanting quality, long-term tenants need to buy in the right area and to select exactly the right type of property.

This is where the expertise of our staff comes in. We sit down with our clients, examine the market, look at the demographics of particular areas and the rental returns expected and then help them shortlist the most affordable and desirable properties.

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