3 reasons to invest in property now
Is there a perfect time to invest in property? What will be the cost if you wait?
One of the most common concerns we hear from new investors or those about to begin their investment journey is they're not sure if they're financially ready to start investing. However, delaying your entry into the property market could end up costing you even more in the long run, and here's why:
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Rising costs over time
When it comes to investing in property, it is better to get in sooner rather than later.
For the most part, property values tend to rise over time, so the longer you wait to make a purchase, the more you are likely to pay. It is not just the cost of the property that will be higher either; with a larger mortgage, you'll end up paying thousands of dollars more in interest over the life of the loan. The more you are paying to purchase the home, the longer it will take you to make a profit from your investment. We always advise prospective investors to invest in property as early as possible to maximise returns in the long run.
Missing out on income
Another drawback to delaying your property investment is that you'll miss out on generating income from your property. With that income, you can pay down the mortgage more quickly or offset your mortgage more quickly so that you can start turning a profit. With those profits, you can invest in more properties, generating even more income. The cycle goes on and on, but that cycle cannot even start if you don't make that first investment.
Delaying Your retirement
For many of our clients, the dream is to be able to generate enough income from investment properties in order to live comfortably in retirement (or enable an earlier retirement through passive income achieved through their investments). For clients with this goal, we advise investing in property as soon as possible to start building an investment portfolio.
It is important to note that the market can fluctuate in the short term, but savvy investors know how to pick the start of the growth cycle in the suburbs they are investing in — or they employ someone to do it for them. Historically, though, it tends to rise in the long term, so the best time to start investing is now; with rising property costs, there will most likely never be a cheaper time to buy into the property market than right now.
