Life after coronavirus will never be the same as before.
We’re waiting for a new beginning, and the forecasts for 2021 are starting to appear one by one, and some of them are more optimistic than others.
Today, I’d like to share two sessions with you that will help you make the best of 2021.
First, I’m going to share three tips for 2021 if you’re interested in getting into property investment, and then I’m going to have a chat with Dr. Nicola Powell, senior research analyst at the Domain Group. We’re going to talk about the trends that Domain has noticed and what’s ahead for property.
At the end of today’s podcast, you’ll be well equipped to have a better understanding of where we are and what’s ahead.
I’m also going to share my regular mindset moment with you.
- Property investment is a process, not an event. To be successful with property is more than just doing some research on the internet. Searching for a property is very different from researching the property markets. Successful investors have a long-term strategy to grow their wealth. They have the correct asset protection and finance structures in place, and they have a good team around them.
- Location will do 80% of the heavy lifting of your properties. Some locations in the last decade have outperformed others by 50% to 100%. How do you identify these locations? It has a lot to do with demographics. Look for gentrifying locations, lifestyle or destination locations, locations with a high walk score, lots of amenities, and locations where the tenants rent for lifestyle reasons and can afford to pay more.
- You can’t pick the top or the bottom of the property market, so don’t try. Rather than trying to time the market, you should buy the best asset you can and hold onto it for the long term.
One extra tip – don’t be scared of taking on debt in today’s market, because debt is not a problem. Understand the three types of debt – bad debt, necessary debt, and good debt.
- Two property highlights of 2020
- It took a pandemic to reimagine work lives
- The reaction of the housing markets when faced with social distancing rules and lockdowns
- Many workers will choose to continue working from home if they have the option
- The use of the term “home office” has increased since the beginning of the pandemic
- There are other differences in the searches for neighborhoods – specifically, more lifestyle words are being searched
- Interest in a second home may trend upward post-pandemic
- Dire predictions about the property market didn’t come to fruition.
- Historically, property prices fare relatively well against negative economic shocks
- House prices don’t necessarily fall during recessions
- Rental markets have seen more disruption than sales markets
- Likely a shorter holiday period in Melbourne
- Other capital cities have been performing near normal
“I believe our capital cities have passed the bottom, and when we look back next year, you’re going to see that in mid-October this year, in general, our property markets have turned.” – Michael Yardney
“Your money’s going to run out long before the opportunities will.” – Michael Yardney
“Who you are today is a result of all the decisions you’ve chosen to make and the decisions you’ve not chosen to make in the past.” – Michael Yardney
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