Australian Investment Property Market Bound to Stay Afloat
This is largely due to the ever increasing number of baby-boomer retirees approaching. With their hard earned investment dollars and a long life of wanting the right real estate retirement home, Australian suburbs, in particular seaside suburbs or waterfront property will be their prime target for retirement. The price will not matter as much as location and that location will be paid for with handsome sums of investment dollars.
This is bound to buoy the property market and investment properties in general. Younger generations will have to cough up the big dollars for prime real estate or simply have to move out to fringe suburbs where property is more affordable.
Australian capital cities will be the safest investment havens for property investors as waterfront property skyrockets over the next 10 years along with inner city suburbs. Buying a home in the future may not be as cheap or easy as aspiring home buyers may wish, whether it is buying land, a townhouse, an investment home or commercial property.
How will the baby boomer generation be able to afford these real estate prices? Well, it’s probably a well known fact that many boomers retirement savings strategy is unwavering. When it comes to investing they have a strategy and they largely keep to it and with higher levels of personal income and assets compared to younger generations, baby boomers help bolster the quality end of the property market.
Baby boomers also appear to be less vulnerable to interest rate rises and changes in the property market than any other investor group. They are cashed up and ready to spend their savings on the property they want. They do not look at it as an investment property, but rather as a home. It doesn’t matter if it is over capitalised to the hilt. This is the final piece of real estate they are going to acquire. It is going to be a good one.
Sydney investment property could be considered stagnant at the moment. But is it really? Who is buying Sydney real estate right now? The answer is plenty of clever property investors who understand how to pick the bargain suburbs at the right time and proper location.
There are still investor hotspots to be found. Of the plan property investments also seem to be very popular with their possible capital gains prior to completion or the start of home owners mortgage repayments.
So do we look for negative cashflow property for our investments, or positive cashflow property? Ofcourse positive cashflow is not necessarily easy to find. Nor is it a property investors outmost priority to locate these type of properties.
They are great for cashflow while the negatively geared properties are more likely to double their value over a 7 – 10 year period. You don’t need to be a property tycoon or an investment guru to work that one out. Negative cashflow investment properties are generaly ‘buy and hold investments’.
There are plenty of property investors out there who will do well while the baby boomers prop up the market and they themselves will also help upkeep the prices.
So if you are a baby boomer and you are looking at a nice Sydney eastern suburb property, and the price is right (and it will be, because you’re getting it regardless). Move in and enjoy the retirement years you so rightfully deserve.
Meanwhile, if you are a son or daughter of a boomer; well, you can always visit on weekends and enjoy the nicer suburbs while dreaming of that elusive Sydney investment property by the waterfront. Some of this real estate will one day be affordable to you. Hopefully. Property investors beware! The Baby Boomers are here.
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