Supply issue swells on the Sunshine Coast
Property listings are drying up on the Sunshine Coast, dropping further below the decade low clocked in November. ...
Softening values, easier access to credit and government grants are triggering confidence in new investors, but will conditions be favourable in 10 years? One mortgage broker weighs in on the long-term outlook.
In a conversation with Smart Property Investment, mortgage broker Rebecca Jarrett-Dalton, founder of Two Red Shoes, believes investors looking to purchase in the current market have attractive long-term prospects.
“I rarely find anyone regrets diving into the property market 10 or 20 years later,” said Ms Jarrett-Dalton
“Certainly there are moments in time people might have the opposite impression. But in the longer term, more people regret not getting property,” continued Ms Jarrett-Dalton.
Where will the value be?
With changing demographics and increased buying power of the younger generations, buyer behaviour is changing, meaning what is and is not popular for owner-occupiers and investors is also evolving. Investors looking to buy and hold should keep a careful eye on how this evolves in time.
“That will change based on changes in the demographic, changes in the transport system, changes in the type of properties that are attractive,” said Ms Jarrett-Dalton.
“We have moved away from large backyards, towards lower-maintenance properties, particularly as the younger generations buy, most probably from an affordability perspective, but also from a maintenance perspective. They don’t want to be mowing lawns all weekend, so it does change.
“While those hotspots might be traditionally beach areas or inner-city areas, they tend to swing and change,” continued Ms Jarrett-Dalton.
Always keep the end in sight
Before setting out and buying a property, savvy investors should think about the end goal and work back, Ms Jarrett-Dalton suggested.
“You have a different mindset if you think about investing or if you think about buying for yourself,” she said.
“It’s really key to think about the end goal before you even think about getting in. If they can think about the end goal, what their exit strategy is, it can help them to define what type of property they should buy, how long they might be there and ultimately want out of it,” said Ms Jarrett-Dalton.
“Investment property is all numbers – you can reduce decisions down to numbers and take the emotion out of stuff. It can make a decision crystal clear for you,” said Ms Jarrett-Dalton.