The property market in 2020 is very different to what we saw two, five and 10 years ago. While our investment strategies generally remain the same, it is important to understand the landscape you’re in and what it means when reducing risk and identifying opportunities. This is the hardest lending environment we’ve seen, in more than 20 years. It is even tougher than straight after the GFC. With that said, there are definite opportunities to be had, if you know what you’re looking for. You also need to be savvy in having your pre-approved finances in order for you to jump on opportunities as they arise. Try using a home loan comparison website to calculate and compare loans.
The purpose of this is to help you understand what the 2020 property market looks like and where those opportunities are. It will sharpen your focus, when investing in property. Ultimately, the most important skill in property investing has nothing to do with property. It has everything to do with mindset. Investing is not what we’re brought up with. We are taught debt is bad and not to talk about money. Bad news sells and we are bombarded by negativity in the media. We are taught to follow the herd, whereas successful investing requires you to be one of the minority.
It isn’t hard to invest in property, although it requires a different way of thinking about money. It requires a growth mindset rather than a minimalist mindset. The pension may have been sufficient in the past. But it’s not today and will definitely not be enough in the future. You need to take control of your own situation and take action to create a better financial life for yourself and your family. With dedication to your goal and a long-term view in mind, amazing things are possible. You need to take the first steps towards achieving these goals. The strategy we suggest to take is not get rich quick. It takes time. It’s get rich slowly, safely and securely by applying a proven process to achieve a measured outcome and mitigate risk. There will always be talk of a property bubble and the fact prices can’t keep rising. I like to refer to a newspaper article which talks about how markets are unaffordable and the dream of home ownership is lost forever. It goes on to say that the median house price in Sydney has grown to $17,000 and the median house price in Melbourne has grown to $11,000. The article was written on December 13, 1970. This is proof, that in 1970 people had the same doubts they do today because the same material is printed year after year, decade after decade. If you took a long-term view and bought property in December 1970, I’m sure you would be pretty happy today! Filtering fact from fiction and taking the first steps to invest in property can be daunting. You need to seek advice and to make sound investment decisions so you can reduce risk as you build your property wealth.