There’s a saying about real estate that suggests sinking your hard-earned money into property is ‘as safe as houses’.
In other words: property is fairly safe bet; it will always be in demand; well-located property will almost always increase in value; and you can derive an income stream two ways, via rent (cashflow) or price appreciation (capital growth).
But in 2020, does this statement still ring true?
This year, everything we know about, well, everything has been challenged.
Other than travel and tourism, no industry has been impacted quite like real estate, with more emergency laws and rushed legislation passed this year than we normally see in the space of a decade.
All of the truths that we knew about property were flipped on their head in space of weeks, if not days, with landlords forced into a position where it became illegal to evict a tenant for not paying their rent.
Now that we are emerging out the other side of the pandemic – in the respect that we are now learning to live with the virus, rather than react to it – many people are questioning their next move when it comes to property investing.
Does investing in real estate still make sense in 2020 – 21?
It is really a smart way to build your wealth?
Whilst the Australian property market (or markets) may be challenging, there are a number of time-tested rules of real estate that don’t change, regardless of what the market, the broader economy or even the global economy is doing.
1. Drivers of growth
Yes, our property markets are still growing – it’s going to take more than a pandemic to put a permanent stop to property price appreciation.
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