Will you regret a property purchase in 10 years time?
I have long held the belief that the best way of starting investing is to have an idea of your exit strategy in mind - why is it you want to invest? This will help you determine what you should invest in.
And what I love about numbers is that what might seem a complex decision can often be reduced to simple math and clarity.
Thanks to Nestegg.com.au for the opportunity to chat on these topics:
Softening values, easier access to credit and government grants are triggering confidence in new investors, but will conditions be favourable in 10 years? One mortgage broker weighs in on the long-term outlook.
In a conversation with Nest Egg’s sister publication Smart Property Investment, mortgage broker Rebecca Jarrett-Dalton, founder of Two Red Shoes, believes investors looking to purchase in the current market have attractive long-term prospects.
“I rarely find anyone regrets diving into the property market 10 or 20 years later,” said Ms Jarrett-Dalton.
“Certainly there are moments in time people might have the opposite impression. But in the longer term, more people regret not getting property,” she continued.
Where will the value be?
With changing demographics and increased buying power of the younger generations, buyer behaviour is changing, meaning what is and is not popular for owner-occupiers and investors is also evolving. Investors looking to buy and hold should keep a careful eye on what the impact of this is in time.
“That will change based on changes in the demographic, changes in the transport system, changes in the type of properties that are attractive,” said Ms Jarrett-Dalton.
“We have moved away from large backyards, towards lower-maintenance properties, particularly as the younger generations buy, most probably from an affordability perspective, but also from a maintenance perspective. They don’t want to be mowing lawns all weekend, so it does change,” she offered.
“While those hotspots might be traditionally beach areas or inner-city areas, they tend to swing and change,” continued Ms Jarrett-Dalton.