The property market has been running hot across much of the country, with “FOMO” (Fear Of Missing Out) felt by many home buyers and investors as prices skyrocket.
But in the latest headlines, there’s talk that property values may be peaking, that interest rates might be about to rise, or even that the RBA and financial regulators might step in to deliberately cool the market.
Will this property boom last into 2022, or is the market about to come down to earth with a CRASH???
Is it too late to get into the market and take advantage of the rapid growth? Or is there much more to come?
Now, some commentators claim that the rising price of the property bubble is about to burst. Are they right, or should we be worried?
You need to know that investing in property is about the time in the market. People who do it right always gain over the long term. And the longer you’re in it, the higher the return. But when you push for quick gains, you’re likely to lose massively. Because property can’t give you a quick fix.
So, worrying about a correction or trying to take advantage of one is a wrong strategy. But also you don’t want to be too late and invest before a crash or when the market is at the peak. You need to hit the timing right.
What’s Really Happening With The Current Property Boom?
We have a feedback loop happening at the moment. Part of this is because we have been living with COVID for over a year now. So you could say that we’ve got a bit of a ‘cabin fever’ property boom.
Current reports show that bank interest rates are down to as little as 1.6%. That’s very low. City properties are returning to a state of low vacancies. And immigration is still falling. We have lost around 70,000 immigrants to Australia in the last 12 months.
But even though immigration rates are low, we are still getting a very low vacancy return. This is because people are now going on their own and starting new households. People are getting away from each other to begin their own households.
And this is what I call a cabin fever property boom.
So, what happens if the rent goes up? Obviously, prices go up. And this boom keeps growing. And it will not go back to ‘normal’.
My Prediction Came True
If you remember, a while back, we talked about a boom stacking concept that I predicted to happen this year. And now it’s already happening.
- At the moment, we’ve a boom happening because of interest rates.
- We have another boom happening because of the cabin fever phenomenon.
- We’ve got a boom happening because people have more money in their pockets due to less spending on travel, going out, etc.
- Another boom is happening because of the impact of money printed on inflation.
- And we have other more small booms stacking too. There’s a lot going on.
These booms are growing. It’s like getting one wave on top of another boom.
And now we’ve got the boom loop that’s happening because there’s not enough property to sell. It’s backed by a feedback loop that will grow through the rest of the year.
People who own properties are not selling even though we’re in a boom, largely due to concerns over COVID and the ongoing snap lockdowns that we’ve been experiencing in Australia for 16 months now. In return, it pushes properties higher. Something that’s predicted to continue over the next six months.
What Can You Do Now?
To be honest, on a day like today, I am grateful to be a property investor. Because on Tuesday, I injured my neck, and I’ve been resting since then. But still, in the three days that I have done nothing, my property has been making money for me.
The wealthy investor makes money with passive income. If you want that too for yourself, then you need to stop listening to naysayers and take action while there is still enough time.
If you’re curious to know how to do it yourself, I have a 14 day challenge to help people who want to create their own Blueprint for creating a cash positive property portfolio that gains value and gives you passive income on autopilot.
Over 14 days, participants hear from the experts and learn from me how to develop your plan, fix your credit, look good for the banks, organise your tax structure, choose the right property, set yourself up for 5-10 properties (instead of getting stuck at 1), and much more.
The Challenge helps you get educated and create an informed plan for getting your first, second, third and beyond cash flow positive investment properties.
It’s a great way to get your ducks in a row and start on your path to becoming a property investor in a safe and steady way.
At the moment I’m offering entry to the challenge with no payment upfront, so there’s basically no risk involved.
If you’re interested in finding out more, go visit this link to check it out.