However the wise money in property tends to invest for the long term and here’s why.
Over the long term in Brisbane, property prices have grown an average of 7 per cent each year over the past 40 years, reports Property Update. But some years have seen more growth, some years have seen less growth and some years have seen a drop in prices (remember 2022 anyone?).
“The key takeaway is that short-term returns can be volatile and unpredictable, but over multiple decades, the returns tend to be far more consistent and predictable,” writes property guru Stuart Wemyss for Property Update.
Interestingly, other investment options, such as exchange traded funds (ETFs) or shares, will report performance over multiple years, including 3, 5 and even 10 year returns.
Property however tends to focus on short-term growth indicators like monthly housing index changes or quarterly and annual growth.
These are useful, but not a complete picture of your market.
If you’re planning to invest, do your research – over the short and long term.
Talk to local agents to understand the dynamics at the local level, not just at the suburb or city level.
Get independent financial advice so you can set a budget and contingency that will keep your sleep-at-night-factor in check regardless of what the property market did that day, week, month or year.
Thinking of investing? Talk to us about landlording or view our current listings for sale.
