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Finance And Property Investment 2018/2019
There has already been a big shift in finance across the property investment landscape as well as its great effect on investment strategies.
In fact, the levers were already pulled the year before. .
Over the past 12 months, acquiring finance for property investment has become harder. As major markets peaked and consequently declined, consumer confidence also eroded.
Consumer confidence started to ebb away very, very quickly-that's where we are today. This year was all about finance, and it will be next year as well.
While the decline of major markets it is expected to be gradual and continuous through to the near future.
Contrary to popular belief, the slowdown in investment is not a result of a lack of opportunities in the market but simply a period of ‘regrouping’ for investors.
Investors are taking their time to analyse the current market and its movements in order to adjust their strategies accordingly and be able to continue creating wealth amid a changing property market.
It’s only the types of properties, the strategies that are changing.
Acquiring finance has been arguably the biggest change in the property investment landscape this year, significantly reshaping the market and influencing the way investors craft their wealth-creation strategies.
Where investors were chasing premier properties a couple of years before, they are now looking for more affordable entry points in order to maintain good serviceability. More investors have also been prioritising cash flow over capital growth when selecting properties to purchase.
Moreover, as the markets of Sydney and Melbourne soften, they have become more willing to jump from state to state in order to maximise wealth-creation opportunities across other markets.
Because of the limitation of finance <https://www.smartpropertyinvestment.com.au/research/18862-property-investment-amid-tighter-lending-is-it-worth-the-risk>, investors have changed their strategy and moved into different types of assets-more affordable, a little bit further out of the city.
There’s no one strategy that will work across the entire investment landscape. In a changing market, it has become more important to understand the movements of the market and their implication to the portfolio in order to continue achieving growth.
It's about finding that strategy that suits an investors risk profile and financial footprint. It should depend on the circumstances of the market as well as the investor