If you are an investor like me the reason, I buy real estate is because it's bricks & Mortar something that I can go and visually see. Just so much safer than shares or bonds and I believe not so volatile (although some years that could be debatable).
If it wasn't for the capital gains, stamp duty I would have bought more properties. I didn't buy them to create instant wealth it was more like a 10–15-year plan (like a super fund). Wealth generation to be done over the long-term heading for that retirement era.
Most of us investors are motivated to buy an investment property when the economy is strong or interest rates are low. Landlords are typically sheltered from poor economic conditions because interest rates always fall, which reduces the biggest cost of holding property. (me I can remember 17% interest rates phew !!)
I believe by 2021 there were about 2.2 million landlords (gee that's stack of rentals we are missing out on) which is only 8.7% of the population - where would we be without them eh? who would provide the increasingly short supply of rentals. Just keep making it harder for the investor governments and they will cash in and you will be left with trying to house them instead.
Who are these investors; well I know when I was in my 40's and owned my own home I remortgaged to buy them, you have to buy them all before you are 50 if you want to make good money as you need to hold property for at least 7-10 years, those investors that hold for 2 years will not make the same profit unless they buy in at the bottom and sell at the so called top. I truly believe you have to hold real estate to enjoy that capital growth.
I do admit that when interest rates go up to such a high rate it can be tough to hold them but be proactive and pay a bit more in advance whilst they are low so you can cope in the future.
DIVORCE - such a dirty word isn't it - that doesn't help it literally halves your fortune - that's why a lot come on the market as the agreement is reached who gets what.
Younger investors tend to sell too quick as they lose their jobs or not working enough hours to contribute to their loans - sometimes at a loss which is very sad for them and leaves such a bad taste in their mouth.
Loan repayments get too high, and people have to sell - they just have not thought that out enough as I said earlier get ahead with the payments.
Older Australians - they transfer the property over to their kids to help them into the market, or they sell their asset to help them with their deposit - more common these days due to the rising costs.
Massive land tax changes in Victoria have created a lot of those buyers heading over here to WA - thanks Victoria you are helping WA massively.
With the rising costs of holding property and the changes of the tenancy act for tenants' rights, I had a lot of calls telling me to sell their investment - they were not going to be told what to do with their property by the Government. So much property got sold which also creates a hole for the number of rentals available for the people - GOOD ONE GOVERNMENT you really know what you are doing eh? I tried to fend as many as I could off but when it comes to the Government becoming a communist country, they were not going to have it (old school like me).
We need to encourage those Mum's and Dad's to keep buying property otherwise there will be no rentals for those that can only rent. More people on social housing more pressure on the Government to produce the accommodation which we all know isn't going to happen.
What's good right now is the rental returns much more encouraging for the investor, not so much putting your hand in the pocket anymore.
WE NEED INVESTORS PEOPLE - they have to buy to keep the rental market alive.
MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!
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