Property markets move in cycles; moving from the bottom, through the growth phases and back to the bottom over a seven to ten year time period.
This is why, as a property investor, the most important factor you must grasp is the ability to forecast property market trends. When you move ahead of the market – anticipating where growth will occur – you can purchase at the lowest price and achieve the greatest gain.
The following property market trends are like signposts along a highway – when you watch for them and know what they indicate you are more likely to succeed at your investing efforts:
- Low interest rate environment – encourages people to get into the market that delivers upward pressure to the rents and/or property values.
- Supply and demand – affected by population growth, interest rates, government policies and consumer sentiment. Right now cities such as Wellington are experiencing a massive undersupply.
- Capital city yields – Major cities such as Wellington and Auckland are full of bustling activity, huge infrastructure spend and provide a convenient lifestyle for tenants. People want to live here, and that generally translates to higher yields for investors.
- Rising home sales – increasing sales are a strong indication of confidence in the markets and it’s that confidence which drives prices upward as more and more individuals compete for a limited number of houses.
Did you enjoy the article above? You can visit our FREE Property Investor Night near you and talk to one of our expert Property Investor coaches, reserve your slot here!
For more updates like this, check our official Facebook page and keep yourself updated on the newest Property Investment news and trends, Don’t forget to like our page! Thank you and see you there!
Sue Irons
Director
Positive Real Estate