Forrestfield 
There are a lot of compelling reasons to invest in property this year if you can afford to do so.
Take a look at why 2023 provides the opportunity to ‘zig’ while others are ‘zagging’ and apply a strategy to grow your property portfolio.
Lack of competition
With so many potential investors shying away from the real estate market this year due to higher interest rates, the lack of competition puts those who are able to invest in a powerful position.
If you have enough for a deposit and can cover the cost of a mortgage, you may find yourself in the enviable position of being the only bidder on a home or apartment, which puts you in a good place to negotiate and save some money.
The lack of competition also puts you in good stead with lenders. If you can prove you are a good candidate for an investment property loan, you may be able to take advantage of cashback offers.
The rental crisis
If there is one massive draw card to investing in property in 2023, it’s the fact that there is a rental shortage in most cities. According to the ABC, this is due to rising interest rates forcing investors to increase rental prices, plus a post-covid surge in migration. The other reason is that the number of people per household has declined somewhat since the pandemic. This has created extra demand in the market.
Rental properties are in short supply and rental yields are at above-average levels because of this. If you buy a quality investment property in 2023, it is unlikely to stand empty for long, which will minimise the holding costs. You should also have your choice of reliable, trustworthy tenants who can supply good references and are able to pay a premium.
Of course, no matter where you invest, it is still important to work with an experienced property manager who provides good service and ensures your tenants are looked after.
Price strength
Australian property prices have actually held strong over recent months, following a period where average values settled.
A lack of stock on the market means that while there are opportunities to secure bargains, you’re less at risk of losing money on your purchase.
Interest rate peak
Yes, interest rates are high in Australia right now and the RBA hasn’t promised they won’t continue to rise, but economists are forecasting they will begin to decrease by the end of the year.
If you work with a good broker and have a clear strategy for your loan, you should find it becomes more affordable over time, or you can refinance to a lower rate at some stage in the near future.
Meanwhile, you can take advantage of the fact that other investors and buyers are hesitant and get in before prices begin to rise again.
Invest wisely for long-term success
If you have the support of a quality agent who can help you identify a good investment opportunity and connect you with a reliable property manager, you can use the market conditions in 2023 to your advantage.
