2016: the year for strategic property investors

The current local and global economic status has confused and disorientated investors. There has been an abundance of mixed signals and messages from experts, the media and even the government on our economic performance. However, if we take a step back and look at the facts in front of us, we can see a clear opportunity for strategic investors, making 2016 a great year for property investment.

Focus on predictions rather than performance

Looking at a market’s previous performance only represents the past, and while this is important, it only represents a portion of the overall picture. Strategic investors will look to the future to understand what is likely to occur in the marketplace.

Being able to decipher the current tell-tale signs of the investing landscape, as well as understanding the macroeconomic performance and it’s affect on Australia’s economy will better prepare you to make strong purchasing decisions in 2016. Many experts believe if you’re only analysing the market using property performance statistics, you’re 18 months behind fellow strategic investors.

Look to relevant market statistics

While it is imperative to familiarise yourself with auction clearance rates, median house price growth, unemployment rates and so on, it’s important not to focus solely on national or state based numbers. These numbers can give you an unrealistic sense of performance in local suburbs or areas you wish to invest.

The current overall property market is fragmented and in various stages of the property cycle, so it’s recommended to look at the microeconomic statistics of an area to identify its true strength or weakness. These factors include demographics, average local household income compared to the national average, long term job prospects in surrounding suburbs and the unemployment rate.

Read between the lines

Everyday we are susceptible to various messages and conflicting opinions of our current economic performance. The key is to read between the lines and understand the motive of the communicator; for instance whether it’s coming from the government and the message relates to popularity scores, or whether the media is sparking a heated debate. Either way, keeping an objective view of the market’s performance is key to making informed, strategic choices. Engaging with a financial professional is highly recommended to assist in this process.

Invest for the long-term

As always, property investment remains a long-term strategic move. This year, although important, is only a stepping stone in your overall portfolio success. Stay informed, make educated choices and you’ll reap the rewards in the future.

To discuss investment opportunities for you in 2016, contact CPS Property today.

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