Four ways to read the property market

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Find success on the property ladder

In an ever-changing property market, it’s important to be able to read beyond the news headlines to truly understand the market. With any property investment journey, there will be a lot of ebbs and flows. But, if you learn how to read the market correctly, you can ride the waves to a successful investment portfolio. If you don’t, you could find yourself out at sea with some big debts to show for it.


1. Understand the property market cycle

The property market cycle, in a nutshell, is a well-established way of predicting how a housing market will act in the coming years. The cycle follows four steps, including value (prices are flat and there’s little activity in the market), growth (prices begin to slowly rise, then gain greater pace), peak (house prices reach the top of the market) and correction (prices stagnate or fall as the market is moderated). Generally, the property cycle will last from seven to 10 years and during that time, it’s not uncommon for the price of a property to double.

There are plenty of factors that impact the property market cycle, and they can be tricky to read, so it’s important to speak to a professional if you’re just starting out in property investment to make sure you’re reading the signs correctly.


2. Analyse the property market

When we talk about analysing the property market, you don’t have to be a technical whizz kid. There are some easy to understand factors when it comes to looking at the property market and predicting where is going to be a good bet for your cash. Top line factors include looking out for areas that are experiencing population increases or infrastructure investments. Look out in the news for things like companies moving into an area, new schools, transport links, and amenities for a certain suburb. You also want to be checking the kind of property that is popular in the area – there’s no point in investing in a one bed unit if the main rental group is a family with four kids.


3. Choose your investment wisely

When the time comes to begin searching for property to invest in, location can make a huge difference in the potential for your investment to grow. Many people chose to buy close to home or in a familiar location because it’s more comfortable. But, with full property market analysis, investors can make sure their investment is maximised and will give the best returns over the short, medium or long term. Use our free suburb report tool to start building your knowledge about your area of interest and try to take the emotion out of your investment decision.


4. Seek experienced advice

Imagine you are going to make a meal – let’s say a lasagne. You’ve never made it before, but you have a pretty good idea of the ingredients and the processes, so you go it alone. Now, you might make a good lasagne, you might make a bad one. It’s really up to chance with your limited experience. But what about if you called up your grandma, who had been making lasagne since she was a child, who had swapped tips and knowledge between her peers, who had mastered the art of the meal? You’d be giving yourself the best chance of making something delicious for your family and friends.

It’s no difference with property – yes, you could go it alone. But to give yourself the best chance of success, it’s best to ensure you understand the processes inside out, and take advice from people who have been in the business for years and years. To get a great team on your side, give Reventon a call. We have 125 years of collective financial planning and investment experience and experts insights, which we can pass onto you.

What’s more, we offer a free property advice session, so you can start your journey with absolutely no cost or risk. Just get the information you need from one of our friendly, expert staff.


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