There’s a faster way to make money in property now. But only those who take action can take advantage of it. Define your market – and succeed.
The old way of making money in property was good for some – the buy, hold, hope and pray formula – but it’s not enough these days. The game has changed. The whole property market changed about 4 years ago, and most people missed it.
There’s growing speculation about the future of the Australian property market these days.
For one, Louis Christopher from SQM Research said that the national property market is overvalued by 22%. He was further quoted by News.com.au saying that “the overvaluation was driven by Sydney and Melbourne and that both capital cities had already entered bubble territory.”
In addition, News.com.au say that “with the backlash and uncertainty surrounding the incoming 45th President of the United States, many are suggesting that the Australian property market could see a boost in demand from foreign investors, who will now view Australia as a safer investment.”
So, what do these have to do with making money in property?
THE TRADITIONAL WAY OF MAKING MONEY IN PROPERTY
The traditional style of property investment has become unsound. As capital growth decelerates, experts draw on the likelihood of our perceived property bubble bursting. And this has prompted the need to be more creative when investing in property.
The Australian Bureau of Statistics reports that since the mid-1950s, property prices have been steadily increasing by an average of 8.6% per annum. In the last decade, it steadied to an average annual increase of 2.8%. It‘s clear that the ‘property boom’ we experienced in the latter part of the 20th Century has begun to fall away as we have entered the 21st Century – despite what some believe.
To illustrate, the median property prices for houses in Sydney was $18,700 in 1970. In 2003, it was $454,250. And as of August 2016, it was $780,000. Note that Sydney is the most expensive capital city.
In Melbourne, the second most expensive capital city, the median property prices for houses was $12,800 in 1970. In 2003, it was $276,000. And as of August 2016, it was $576,000.
As you can see, prices sky-rocketed over that period of time. But to gauge industry growth, adjustments in inflation and wages have to be accounted for. It’s safe to say, then, that the appreciation in the property market reached its highs during the late 1990’s and early 2000’s.
Additionally, during this period of growth, there was a series of mini-booms which first took place in the 1970’s and 1980’s, and then between 1996 and 2003. Data indicates that after the first three mini-booms, there was a fall in real price value. We are yet to see this trend occur following our latest mini-boom.
So does this mean our economy is just exceptionally strong at the moment?
Or are we experiencing the calm before the storm?
THE NEW WAY TO MAKE MONEY IN PROPERTY FAST!
Uncertainty is one of the key motivators for pro-activity, planning and strategy. When you place uncertainty in the context of financial security and freedom, a majority of the population will conform to a safe approach.
But many Australians are realising that the landscape is changing at a fast rate. If they continue to implement old and outdated strategies, they could fall behind the eight-ball.
So some people started to buy properties below market price. Some of them started to develop properties. Some of them started to renovate properties. And some started to seek better use of land. These people are the ones currently making money in real estate. They aren’t making their profit at the end of each deal or in 10 years’ time.
They’re profiting now because they’re turning this industry into a profession.
The traditional way of making money in property involves making profits if there’s capital growth. This can be ideal if property values continue to soar. However, many industry professionals believe that it won’t happen anymore.
In order to lower the risks involved with making such large investments, you must fully understand the market you’re working in.
New strategies are being produced and successfully implemented across Australia. These work in tandem with our current market and takes advantage of the current opportunities that are ubiquitous within our communities.
Property is the number one game on the planet. 87% of the world’s millionaires and billionaires have either made or held their wealth in property. Everything was doubling but it’s just not going to happen anymore. The whole world is changing. We believe in active strategies and we want to do property the right way.
Australians have market opportunities that they can take advantage of. They can build on Undervalued blocks of land, they can invest in distressed properties, they can renovate for wealth, they can develop sites, the list goes on. By capturing these opportunities, they’re putting themselves in the box seat for fast and lucrative results.
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