3 Property Market Misconceptions You’re Likely to See in 2024!

It’s safe to say…

There are PLENTY of opinions and rumours going around concerning the property market as we move through 2024.

Not just through the news and social media outlets, but also in day-to-day conversation. And that’s completely fair enough, everyone has an opinion – and people are more than likely just wanting to help.

But, at the end of the day, it’s also very safe to say…

There are PLENTY of common misconceptions plaguing the market and potential buyers.

So, as a team with a pulse on the Australian Property Market, we thought we’d share 3 of the most prevalent misconceptions to be aware of as a savvy property investor.

• MIsconception 1: You MUST buy where you know.

  As humans, it’s no secret that we tend to trust the things that we know – and our town, city or region is no different. It’s really a form of unconscious bias that can have a major impact on your decision making as a property investor.

  The thing is, looking at the property market as a whole is incredibly important, as ultimately, working to find property to suit your unique goals and circumstances is far more important than buying a place across the street.

  So, when it comes to building your tailored Propell Property Plan, we ensure that your outcome is tailored to YOU.

  It might just be that your ideal property is situated outside your home state or city. In fact, we’re working with more and more clients in this exact situation, including families in Sydney and Perth, purchasing property in South East Queensland, as well as Brisbane based couples purchasing on the NSW North Coast.

  It may be the best option to purchase outside of your city or state, in order to meet your goals from both a financial and lifestyle perspective.

• MIsconception 2: You must be REALLY wealthy to invest

  It’s safe to say that over the past couple of years, there has been a LOT of fear and uproar surrounding the property market. Because of this, it can be easy to count yourself out as a buyer.

  With rising interest rates and inflation making houses less affordable for many throughout 2022 and 2023, it can easily cast a shadow of doubt over your circumstances, even if you’ve seen the news about the market picking back up, and inflation slowing.

  So, rather than cancelling yourself out of the property investment equation, by saying ‘Oh I don’t make $500K, so there’s no way I could invest’…

  Instead, it might just be the perfect opportunity to get into the market before prices skyrocket once more. Use these three things to help you understand whether purchasing is an option.

  • Can you afford a Deposit? We often say that the smaller the deposit, the better (within reason) – and even 10% can work. This is because it leaves you more equity to continue growing your portfolio.

  • Can you service the Loan? Paying off the mortgage of the property is typically aided by your income, as well as rental income.

  • Do you have a Cash Buffer? We typically recommend $20-$30K as a buffer, just to ensure safety should a family or financial emergency arise.

  It’s as simple as this – you don’t have to be making big 4 bank CEO type money to be investing in property…

• Misconception 3: You NEED to wait for rates to go down

  As any seasoned and successful investor would profess…

  The best time to invest was yesterday.

  We’re seeing The ANZ-Roy Morgan Consumer Confidence figure continue to grow upon 18 month highs, as well as inflation slow, and indications by the big banks that interest rates are predicted to be at, or near their maximum level.

  And, what’s more, if you’ve been hanging out with us at Propell for a while, you’ll know that we love chatting about supply and demand. Despite it being a relatively simple economic concept, it provides a huge amount of insight into how the markets will react – especially our favourite, the property market.

  What does all of this mean?

  Well simply, demand for property will continue to increase off the back of these inflation and confidence figure. And with a dire supply situation that we’re currently facing in Australia – with lows in approvals and new build completions, this disparity will only bring price growth.

  So by waiting for rates to go down, you might just be passing up a ripe opportunity to make the most of the market – before it rises on the back of this supply and demand landscape.

So there you go – 3 of the major misconceptions you’re likely to hear about when talking about Australia’s Property Market in 2024.

Have a question, query or concern?

Want to know more about how we build tailored strategy and research into your Propell Property Plan?

Give us a call on 1300 776 735, or send through an enquiry HERE – we’d love to chat!