When to invest? When to wait?
Most of the ‘old heads’ we meet amongst property investors have a calm patience about them. Many owned property during the soaring inflation of the 1970’s, interest rates of 17% and ‘recessions we had to have’ in the 1990’s, and finally the boom times of the 2000’s. Slow to panic in dropping markets, un-tempted by rising valuations, undeterred by a troublesome tenant, they focus on the long term. We’re not saying it’s the only way to approach property investment, but it’s certainly worked for many.
In the early 1990’s one Brisbane property investor and author jolted plenty of us into investing in real estate. Jan Somers, a former Cleveland school-teacher, wrote a best-seller called “Building Wealth Through Investment Property”. Her message? You can’t do nothing and expect to retire on anything more than chicken feed. Compulsory super won’t be enough so invest then be patient. It’s become unfashionable to buy books like that… but the message remains sound.
So as we kick off 2012 will investors return to Brisbane real estate? We’ve seen self-managed super funds nibbling at the offerings and the ATO reports that of the $418 billion held through SMSF’s less than $15 billion of it is currently invested in residential real estate. And $114 billion is sitting in cash deposits. It’s a huge market waiting for the ‘right time’.
What would tempt you to invest in real estate right now? Higher rents? Scrapping capital gains tax? Reduced stamp duties? Or is just not the right time to buy Brisbane real estate?
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