Many property investors procrastinate on growing their portfolios due to fear of buying the wrong property, in the wrong area, or at the wrong time. However, Mark Bouris believes that Australian investors have nothing to worry about for a long time.
According to him, Sydney’s population will continue to grow, and so will the number of people in major cities, and there will always be demand for more properties.
The more a property investor is willing to hold on, look after and develop their assets for the long-term, the more guaranteed rewards will be for them.
“We should have a long-term view on [property investment] and just go through the process. That’s why the Asian community is so smart when it comes to investing in property. They never sell. They’re just buying, buying, buying for accumulation purposes,” Mark said.
“If you just think about the fundamentals of that ... Sydney’s populations are going to grow. People have got to live somewhere. The reason why Sydney’s populations are going to grow is because this is where the jobs are. So people are going to come flocking in here – they’re either going to own or rent. One of the two. There’s no other option.”
He added: “In 10 years’ time, you can imagine there’s going to be huge demand for properties here. It’s going to go up, whether it goes up by 5 per cent or less than the CPI, or more than the CPI or double it, the same rate it’s been going for the last 5 years, it’s really irrelevant. It’s just going to go up. The game for you is to make sure that you hold for as long as you can. That’s the deal. It’s simple.”
Australia is an especially lucrative landscape for property investors because of its exceptional economic health.
“We haven’t had a recession for 20-something years, right?” Smart Property Investment’s Phil Tarrant said.
In fact, Mark believes that opportunities to create wealth through property is bigger in Australia than in most places in the world, including America.
Moreover, it’s easier to predict the movement of the market and other factors that will affect investments because of the unique distribution of the population in the continent, making investors more “protected” from unexpected swings.
“There’s no country in the world, particularly as big as ours, as a continent, that has such population concentration in three cities. If you go to America, there’s not one city that dominates like Sydney, Melbourne, Brisbane [in] our holding of our population,”
The reason for that is our geography – our three big cities have more than 55 per cent of our population, so that’s where the jobs are going to be, that’s where the people are going to live, and that’s where the property prices are going to be, and that’s why property prices continue to rise in those three cities.”.
Mark added: “We have a specific set of circumstances that address Australia, and it’s a lot to do with our geography and the size of our country and the infrastructure that we don’t have. Therefore property prices will continue on, unless the Australian government says, ‘Oh, we’ve decided we’re going to invest billions and billions of dollars into some part of northwestern New South Wales and we’re going to build a new city which is going to attract all the business out of Sydney and put it into this place,’ which is totally unlikely. Therefore we’re far more protected from the swings that other countries get.”
So, the next best thing to do for property investors in Australia? Just do it and get started!
“That’s what Nike says, ‘Just do it’. I would say to somebody, just keep it nice and simple,” Mark concluded.
Tune in to Mark Bouris’ episode in The Smart Property Investment Show to know more about his secrets to success in property and how you can cut through the noise and doom and gloom to build a strong portfolio regardless of market conditions.