Buying real estate: What you need to know for 2021 and beyond
Buying real estate is an ever-changing landscape and to be a successful property investor in 2021 and beyond, you’ll have to do more than just wing it and hope for the best.
With severe economic disruptions, such as COVID-19, and other cultural, global and environmental factors – the way we are living, working and playing is shifting, and it’s having a massive impact on real estate.
Traditionally real estate has always been seen as a rock-solid investment choice. Property values rise, rents go up, and investors reap the rewards – but with so many new and volatile variables, can we still rely on real estate to be a primary wealth creation vehicle?
The short answer is yes, real estate can and will continue to grow, but there are right and wrong ways to go about it. Here’s what you need to understand in 2021 and beyond, to have a winning shot as a property investor…
YOU WANT… A GOOD UNDERSTANDING OF REAL ESTATE AS AN INVESTMENT
Real estate is one of the only assets that works for you while you’re sleeping. Value of real estate rises in either capital growth or rental growth all day, every day, without any input from you, meaning all you have to do is sit back and watch your bricks and mortar appreciate! However, it’s not true that you can simply snap up any old property and expect it to have great capital growth. In 2021 and beyond you will have to buy real estate based on a variety of factors such as location and liveability.
YOU WANT… INSIDER KNOWLEDGE ON BURBS AND HOODS
Don’t ask, “Should I buy in Brisbane?”
Instead ask, “What areas of Brisbane are going to be worth more in the future?”
Even within certain suburbs there will be good and bad streets in which to invest your money. Gaining some knowledge about how property prices are rising, the type of person who lives in the area, and local job and infrastructure growth, will all give you a better idea of how likely it may be that property will increase in value over time, and if rent increases are frequent and acceptable.
YOU WANT… TENANTS WHO CAN COPE WITH RISING RENTS
Typically, property investors are buying properties worth $300,000-$500,000, and while that might feel like a steal, it doesn’t lead to the kind of passive income that can change your life and get you out of the rat race. Cheaper properties mean lower rents, which will attract tenants who are less affluent. Buying property in an area where tenants earn high incomes and can comfortably sustain annual rent increases, mean greater and faster returns for you.
YOU WANT… TO TAKE ADVANTAGE OF THE 2021 LANDSCAPE
Yes, it’s been a tough year. But it’s not all bad news. Rates are super low, there are government grants, and state and federal boosts and bonuses, all of which can help get people into the marketplace. This is a great time to invest in a piece of real estate that is sustainable, meaning it can hold its own and come out on top, even with some struggles and plateaus.
To conclude, you need to buy real estate:
- Where you can put the rent up
- That will rent quickly
- That will have a low vacancy rate
- Which will give you a good rental return
- That will rarely be unoccupied over the longer term
- That will attract tenants who can sustain rental increases
Just as each year offers new challenges and opportunities, 2021 will be the same. Staying up to date with current market trends and predictions will be key to making sound and sustainable investing decisions that will offer long-term gains in an uncertain and changing future.
Get ahead of the game and arm yourself with the tools and resources to help you thrive as a property investor. We are offering a free a property investing seminar for people serious about learning how they can create a future of security and freedom through the vehicle of real estate.
Don’t leave it to chance. Discover the most important real estate buying fundamentals for 2021 and beyond.
Spaces are limited. Book here.
Sam Saggers
Co Founder Positive Real Estate
