Whether you’re an owner occupier or an investor, you’ll no doubt have spent your fair share of time analysing sales trends and attempting to predict that next hot spot to park your hard earned cash.
Some will have greater success than others and one fact that is hard to escape is that most lessons are learned through experience.
So as we look back over another year, what lessons can we learn from the 2017 market?
This question was posed to a number of property commentators on propertyupdate.com.au and here’s what they had to say.
- The only certainty is change. In 2017 we saw changes to depreciation tax deductions, tighter investor lending conditions and first home buyer incentives prompt a rethink of investment strategies for new and seasoned property players.
- Now is not a time for hot-spotting. The ‘boring’ decision may be the best in a slower price growth market with slow yet reliable growth promising more in the longer term than gambling on a questionable hot spot.
- Local factors drive property market performance. Despite all Australians enjoying the same low interest rate, property markets across and within capital cities have shown very different growth rates in 2017 so it’s important to research local factors when buying for growth.
- Finance is key. It’s become tougher to get finance as regulators take measures to cool the Sydney and Melbourne property booms. So be clear about what you can borrow and choose the best possible property within your budget so you get long term returns.
- Become a borderless investor. If you do want to invest, don’t confine yourself to your own suburb. Research where growth is forecast and perhaps even manufacture your own growth through renovations or development.