Profit at Purchase and Have a Happy New Year

If you haven't given yourself a New Year's resolution yet, here's one for you....get in early and take advantage of the new property cycle. Buy the right property, in the right location and most importantly, for the right price and you could do very well in the long term. Here's three great reasons why I will be investing in property again this year: 1. Supply and demand Take a look around where you live right now and notice how many houses are for sale and how quickly you see the “SOLD” sticker slapped on them. Pretty quick huh? That's because demand is outstripping supply. Facts tell: massive growth in immigration levels, a baby boom and the first home buyers’ bonus have seen demand for housing on the up. Despite the shortage of dwellings around Australia, unless a lot more land is released in the future there will continue to not be enough houses to meet the demand. 2. Economic confidence The Aussie economy is still looking healthy and we are experiencing much more stability than many other countries. This confidence flows onto demand for goods and services, including property. We have been relatively lucky in Australia with the effects of the global financial crisis being minimal. The government’s financial stimulus and interest rate cuts created a resilience that property investors can now make the most of. Sure none of us have a crystal ball to see what’s around the corner, but I am a believe in making hay while the sun is shining! 3. The rent race With the growing trends of more people living alone and longer and the demand for people seeking accommodation as tennants, property values and rental returns have gone up. Today demand for rental properties is outstripping supply. Only last week one simple three line advertisement, in a regional newspaper, for one of my two bedroom flats netted me a whopping 50 phone inquiries. Record low vacancy rates, fewer investors and less government housing will see this residential rent rise continue. Now is a great time to turn your property into positive cash flow while helping others who need it with clean, functional accommodation. I believe all this makes 2010 a great time to buy an investment property and while some suburbs will no doubt outperform others, with the right knowledge, know-how and advice you could be setting yourself up to have a very happy new year! Note: this article does not constitute financial advice it is based on personal experience. Your individual circumstance may vary and you should always seek the advice of professionals.