What makes prices rise and 3 ways to make money in property in 2019
“Today I’m going to discuss 2 things with you.
Why property prices grow and the 3 ways you can make money in property.
What makes prices grow?
1. Supply – too few new dwellings built and Demand – are there factors making the area really desirable such as zoned schooling, convenient work and public transport and lifestyle factors like cafes, beaches and the bush.
2. Interest rates – are they low, as this means the cost of money to borrow is less than when they are high. A lower cost of money means more people can afford to borrow.
3. Unemployment – low unemployment generally means a larger percentage of the working age population have jobs and usually a more stable workforce.
4. Incomes – rising incomes generally means more disposable income and more disposable income means more money to spend on things like property or lifestyle activities.
5. Sentiment – what does the general population feel about the market and forecast will happen in the future, this can often be influenced by media and industry experts.
6. Economic wide factors – royal commission and APRA affecting lending standards, borrowing capacities and deposit limits.
How can you make money in property?
There are 3 ways in my opinion.
Hope and wait – hope that the market will increase and increase the underlying value of your property.
Zoning – changes by local council can cause the highest and best use to increase for example, if your property goes from being low density to high density. You suddenly have more options to profit from the property.
Actively control – increase the value of the property yourself through renovations, additions, subdivisions and low, medium and high-density developments.”…