DPN’s Managing Director, Sam Khalil, reveals the latest property investment trends and opportunities.
As property market sentiment is shaped by the actual economy, as well as stimulatory initiatives, Sam Khalil discusses the impact of the government’s efforts to restore borrowing levels and the broader economy.
Leverage regulatory stability
As a result of tightened lending regulations by the Australian Prudential Regulation Authority and the Royal Commission, investment loan transactions dwindled across the last 12-18 months. Many were also concerned about a change in government, with proposed changes to negative gearing and capital gains tax.
With the government now confirmed, along with stimulatory initiatives such as sizeable tax cuts, enormous infrastructure spending and interest rate cuts by the RBA, Sam Khalil advises that we will see increased confidence in the market.
Identify socio-economic trends by region
Investing selectively in the next 6-12 months is the key to taking advantage of opportunities before other buyers and investors take to the market after it has rebounded. Investors should target areas exposed to growth trends. For example, in Sydney, the western suburbs near the new airport are set to receive a boost from extensive infrastructure. For the long term, Canberra offers population growth, facilities and projects to stimulate the economy.
Ensure your money works smarter, not harder
Investing in property offers benefits through yield, modest stability and capital appreciation. On the other hand, interest rates are at a record low, term deposits and bonds provide low growth and shares see periods of significant volatility. The right property in a sought after area will always appeal and being in the market is the first step for sustainable capital growth.
For more comprehensive information, see DPN’s article: Sam Khalil’s property investment outlook – spring 2019.
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