Time to invest in Safe Havens
The instability in global equity markets caused by Greece’s debt defaults and China’s burst stock market bubble has increased caution among investors and put the attention back on seeking out where today’s safe havens lie.
The situation in Greece is not likely to have an apparent impact on Australian property demand, however there is expected to be a move by some investors to safe haven locations. When it comes to buying property, Australia is considered a safe location.
With the Australian dollar recently reaching a fresh six year low of $US72 cents – this is likely to contribute to the increasing demand for Australian property assets as they become relatively cheaper for both domestic and offshore investors. This includes China, which is now the strongest offshore investor in Australian property.
What sort of Property should an Investor Buy?
As an investor, one should be looking at properties that are strong (will increase in value at above average capital growth) and stable (should not fluctuate in value much if we hit some economic turbulence.) In particular, buying properties in areas where disposable income is high and increasing above average. In general this will be because people are working in the services industries. Despite what's happening overseas there will always be people getting married, having babies, divorcing and needing accommodation.
There is nothing new about investing in these markets, but they have stood the test of time through multiple property cycles.
So what are you doing with your money?
If you are considering investing in Australian Property and would like some advice on strong and stable property investment matters, please contact Andrew Johnson direct on +61 418 194 101 or Jenny Quek on +61 419 968 870 or register your interest for a complimentary, no-obligation consultation here.