Why 2022 Is The Right Time To Invest In Property
Is 2022 going to be the year you start investing in property? Maybe you’ve already started building your portfolio and are looking to take your investments to the next level? It’s vital that you realise the property and investment loan environment, no matter where you are in your path, so you can make the best decision.
This year appears to be a good year to invest in real estate. Continue reading to learn more about why this is the case and how to plan for 2022.
Prices are rapidly increasing:
A real estate investment in property is just that: an investment. With this in mind, market swings must be considered while making an investment decision.
The Australian property market is now through a period of tremendous expansion, with property values increasing at an alarming rate. Property prices in Australia increased by 20.6 percent between November 2020 and November 2021. When we look at Australia’s residential property market in isolation, we can observe that prices have risen by 22.2 percent in the year leading up to November 2021, which is much over the national average. This amounts to an increase of $126,700 over the previous year’s median values.
While November 2021 witnessed just a 1.3 percent increase, the lowest in the previous ten months, the forecast remains basically unchanged. In other words, housing prices are likely to continue rising through 2022, even if the rate of rising slows slightly.
So, what does this imply for financial investors? It suggests that homes acquired now are likely to appreciate in value over time, resulting in a high return on investment when they are sold. Delaying a home purchase might also result in purchasers paying extra for the identical property in the future.
The Rental Market Is In Good Shape:
Purchasing a rental property is a popular investment option in Australia, and for good reason. The property’s rental income can be used to help pay down the mortgage or home loan, as well as other obligations. Renting out a house may help you create income and increase your return on investment if you promote it appropriately.
The rental market is now robust, making 2022 an excellent time to buy this type of property. According to a survey from 2021, rental rates increased by 7.4% in 2021, the greatest pace of rising in well over a decade. Almost half of the gain occurred in the fourth quarter of 2021, indicating that the rental market is still booming.
Interest Rates on Mortgages Remain Low:
For a long time, home loan and mortgage interest rates have been at all-time lows, making 2022 an excellent year to buy a home. There is a sense of urgency here: the Reserve Bank of Australia has stated that interest rates would likely rise before 2024, with some anticipating that these increases will begin within the next year.
By the end of 2022, interest rates are predicted to have risen to 1%, and by the end of 2023, they will have risen to 1.75 percent. A piece of great advice for buying an investment in property is to act quickly to take advantage of the present cheap rates.
You can protect yourself against rising mortgage rates by doing the following:
It’s normal to be apprehensive about the above-mentioned hurry. Investing in real estate is a major choice, and no one wants to hurry into it. This is why, in 2022, with the help of a Sydney mortgage broker the mortgage pre-approvals and fixed-rate loans will be critical in assisting investors in making the best selections possible.
With a pre-approval, investors may protect themselves from rate hikes by basically locking in a fixed interest rate on their mortgage. The investor may finish the acquisition of the correct rental property for their purposes at the end of the pre-approval period without concern of surprise interest rate spikes.
The Fresh Water team works with a wide range of property buyers, from first-time homeowners to seasoned real estate investors. We can assist you in locating the property financing products you require to get the best benefits from your acquisition.
Want home loan advice?
Hit the button below to arrange a conversation with one of my loan specialists to find a deal that’s best for your situation.
We partner with over 50 lenders so you can find the perfect solution