Is 2023 the year for you as a property investor?
According to our favourite economic concept – supply and demand – we think 2023 is your year!
With a significant rise in interest rates over the past year, as well as growing inflation, it’s safe to say that as a whole, the property market has taken a bit of a hit.
For most people, this is a recipe for stress and worry, as budgeting becomes tougher and household savings rates dwindle.
But do you know what it tells us?
There are SIGNIFICANT property investment opportunities across Australia, for savvy, goal-oriented buyers.
You know – people like you – who may be a little time poor, but are in the position to capitalise on a slowing market and growing rental demand.
As much as interest rate rises are rough – like the weather, it doesn’t do much good for us to worry about them. In the long run, it’s supply and demand that play a far bigger role!
So, in saying that, here are 3 things to understand as an Australian property investor in 2023…
- LOW SUPPLY
To put it plainly, Australia is facing a HUGE undersupply of homes as we enter 2023.
A perfect storm of increased materials costs, labour shortages and shipping trouble has meant that projects across Australia have slowed, both on a large scale, and at domestic construction level.
The most evident symptom of this is Australia’s rental crisis, where cities across the country are facing vacancy rates at less than 1%, and tenants are forced to bid their desired rental price in order to have a chance of living in their desired home.
- INCREASED DEMAND
Off the back of the pandemic, population growth is now back to a boom, meaning that there is more demand than ever for quality homes.
With continued population growth through an increase in migration post-pandemic, as well as large scale events such as the Commonwealth and Olympic Games coming to Australia in the coming years, the economy is in a position where this demand will only continue to grow.
Australia’s labour shortages also come into play here. With an estimated half a MILLION skilled jobs needed over the next couple of years, migration of well paid workers will continue, providing more demand for an already saturated rental market.
- VARYING OPPORTUNITIES
As a result of this increased demand, we are seeing the range of opportunities really open up for our clients – not just in terms of where they can invest, but also the type of dwellings that can provide great results.
We saw some amazing results for our investors in 2022, with incredibly varying purchasing opportunities, from duplexes in New South Wales’ Hunter Valley, to family homes in Brisbane.
Alongside this, we were presented with some amazing boutique opportunities in coastal havens, as well as apartment living in some gorgeous inner city locations.
When all is said and done, it means that investment is truly a tailored situation to each and every person. What works well for you might not be the best opportunity for someone else, and we understand that. You don’t need to invest where your ‘expert’ friend told you, nor do you need to buy a place in your own town.
Property investment is about understanding your unique situation and matching it with the right opportunity.
In the current property market, this is a great thing, as opportunities are sprouting from all directions as the economy recovers from COVID and inflation and interest rates are less scary looking.
What does this mean for property investment in 2023?
Well first of all, what’s NOT on the cards is a property market crash to the extent that the media is percolating.
Predictions of 30% losses may sound scary, but they’ve never happened before, and there’s no reason why it’ll happen now. Not even during the GFC, or the global recession in the 90’s has property dropped to that extent
Instead, the independent, specialist property analysts, such as PropTrack and Michael Yardney, are predicting Australia’s market to return to stable growth throughout 2023.
Following the massive property boom we saw in 2020 and 2021, it’s safe to say that the general population’s outlook on property has become a little jaded – property owners have been quite spoiled!
So, rather than seeing this kind of growth again over the next couple of years, we’re looking at a time of more consolidated, long-term growth.
And do you know what?
That’s great!
At the end of the day, property investment is all about long-term growth.
With the supply of quality and new builds at severe lows, it means that demand will only rise, rewarding the investors that can provide quality property to tenants. This makes it SUCH a great time to become an investor…
Contribute to that supply, and fill your pockets with solid cash flow from high rental yields, and equity gain from a rising market.
At Propell, we provide a unique combination of education and tailored strategy, to ensure our clients are on the right track to achieve their financial goals through property investment.
We’re a team that LOVES helping motivated individuals, couples and families to achieve their own unique financial freedom.
Looking to take charge of your financial future this year?Give us a call on 1300 776 735, or send through an enquiry HERE, we’d love to chat!
