2020 is turning into a boom year

It looks like 2020 is going to be a boom year!

But before you get carried away…

I believe this is going to be a boom year for fright! The media is at it again and there is no shortage of scary headlines.

Bull Bear

While many of us started the new decade with optimism, it didn’t take long for the frightening headlines to appear.

Things like – “Middle East tension will start the next major war”; “Tragic bushfires means Australia will fall into recession”; “Corona Virus will lead to a world recession”; “Property Values Will Crash” “Housing is unaffordable!”; “More APRA regulations to come”; “Kim Kardashian does it again!”

Of course, just about every year is a boom year for fright.

As far back as I can remember there have always been scary stories in the media.

And looking back over the years I have invested through many property upturns and slowdowns, stock market highs and crashes, periods of high (in fact double digit) interest rates and periods when people thought housing was unaffordable or would never go up in value again.

Yet despite all this, the value of my properties keep doubling allowing me to refinance and buy even more properties.

Like I said, there’s always bad news in the media

I remember in the late 1980’s the cry was, “Don’t buy houses… they can’t go up in value. Your kids will never be able to afford them.”

where to invest in property 2020 australia
Then there were similar headlines in late 2003, predictions of our property markets collapsing in 2008 and when interest rates rose in 2010 the media predicted the end of the property boom once again.

In between there was a regular parade of overseas “gurus” explaining how our property market is a significantly overvalued house of cards that is about to topple.

Just think back 12 months to all the predictions of a property market downturn and look where we are today.

Yes, there always seemed to be scary headlines about a grim future which could have given me plenty of reasons not to invest in property.

Before the global warming crisis there was an over-population crisis with politicians, environmentalist and economists predicting massive food shortages, rioting in the streets, rampant cannibalism and an impending collapse of society.

I even recall a panic about global cooling.

Of course, the media gets more mileage out of this type of story.

They find it hard to get readers’ interest reporting on significant population growth, strong exports of our minerals, infrastructure spending, the greatest number of Australian investors on record and almost three decades of continuous economic growth for Australia.

This is boring.

Step back

To be a successful property investor you need to step back and take a big picture view and refuse to be scared by the next boogey man jumping out from behind the bushes.

Happy Family With Cat Moving To New Home CartoonThe fact is, this week somebody’s getting married, somebody’s looking forward to having a baby, somebody’s getting promoted, somebody’s getting transferred, somebody’s getting divorced.

And a lot of people are happening to get rich.

This year around 170,000 new households will be formed in Australia and they are all going to have to live somewhere.

Those that can’t afford to buy, will have to rent.

This means the long term fundamentals, in fact the medium term fundamentals, for property are very sound.

And if you take a long term perspective, you’ll be able to spot and act on opportunities that arise this year as many potential home buyers and investors get scared by this boom year for fright.

A year of opportunity

I see 2020 as being a year of great opportunity for strategic property investors.

OpportunityA year of opportunities for those who are willing and able to see the big picture.

But remember — what you look for is what you see.

If you look for bad news, you’ll find it.

On the other hand, if you look for opportunities, you will find them.

And boy are their opportunities out there at present at the beginning of a new property cycle.

Sure there are a lot of headwinds and challenges for our economy.

However, despite these our economy is chugging along in second gear – not in reverse.

We’re still creating jobs; our population is growing and interest rates are likely to fall a little further this year.

At the same time the fundamentals of supply and demand will support the property markets of our 3 big capital cities and Canberra this year.

NewsI’ve found that when there’s lots of bad news people believe times are going to be tough forever, just like when things are good people forget the bad times ever existed and think that things are going to remain good forever.

Neither case is true!

2020 will be the right time to educate yourself as an investor and take advantage of the opportunities this early stage of a new property cycle presents.

Yes, there are economic challenges ahead and sure property values will be unaffordable for some – but it’s always been that way.

As always, while some people worry about the bad news and sit on the side lines, astute investors will set themselves for their future financial freedom by purchasing well located real estate, recognising they only get a few chances in their lifetime to invest at the beginning of a new property cycle.

What are you going to do in 2020?

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

MetropoleSure many of the property markets around Australia are performing well, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.

Why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?

We help our clients grow, protect and pass on their wealth through a range of services including:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

investment property australia 2020

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Michael Yardney

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


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