SINCE 2006, OpenCorp helps investors expand their portfolios and grow rich. Your investment company met Cam McLellan, Allister Lewison and Michael Beresf, directors of OpenCorp 0 to discuss the future of the Australian real estate market.
From left to right: Allister Lewison, Michael Beresf 0 e, Cam McLellan
YIP: Do you think we will see big changes in the marketplace in general, now that the elections are over?
Michael: No, not really. Investment is a long game and supply and demand are the main drivers. Factors such as interest rates, inflation, employment growth, wage growth and real estate growth are only leverage points on supply and demand. You just have to be ready to deal with the changes as they happen.
"Through a process of elimination, the agreement of a lifetime can be found every day of the week – if you know how to find it."
YIP: You all started your career investing about 20 years ago. But it is obvious that the market presents today different challenges. How should new investors approach things in 2019?
Allister: This is due to the fact that the government deliberately worked for the decentralization of the CBDs in the capital. It looks a little like the way we see organized cities, for example, in England. There are good practical reasons for this. The decentralized approach reduces the pressure on public transport and facilities while also providing new services in areas traditionally neglected. However, from a real estate investment perspective, this can make things more difficult.
Cam: You must now adopt a much more nuanced vision. As a result, one of the aspects we describe with customers is the developer's chain of activity. We teach them how to identify the moment of danger; when not to invest in the property. We are also looking at the future of supply and demand in a given region to enable them to continually choose sound investments. Through a process of elimination, the agreement of a lifetime can be found every day of the week – if you know how to find it.
"Interest rates, inflation, job growth, wages, and real estate growth are just leverage points on the dollar. supply and demand "
YIP: Given the low levels of the interest rate, netizens expressed their worry about the possibility of a property accident. Do you think that is likely?
Michael: At first glance, this is an understandable concern, but if you take a closer look, it seems much less likely. Over the last 30 or so years, we have witnessed the removal and return of negative conversion, the "recession we should have", the Asian financial crisis of 1997, September 11, and the GFC. I'm not saying that real estate prices will go up every day or every year, but if the market was in free fall, it would probably have occurred around these events, while the rates for real estate are going to rise every day or every year, but if the market was plummeting, it would probably have occurred around those events, while the rates of the real estate market would have increased. interest would increase or decrease by 25%.
YIP: If you had a crystal ball, what would you predict in the next two or three years for real estate markets in Australian capitals?
Allister: We are currently working on an artificial correction in many markets across the country and find that property values ​​are falling apart. Demand has increased in recent years, but the correction is not due to oversupply; largely because of the constraints imposed on borrowers. However, this is likely to be resolved soon as APRA is providing updates on the loan policy. This should make it easier for banks and other lenders to provide credit to those who need it.
Cam: All real estate markets are also cyclical. Once you have the right tools, it's easy to know when a market has reached its peak or is starting to rise again.
Michael: What people are currently paying in interest is not important; this is how lenders evaluate them, which is always at a higher rate than the loan itself. Theoretically, we should see more buyers in the market and increase consumer confidence in the next few years.
Allister: Overall, I would like to say that this is the right time to buy for the moment.
WANT TO KNOW MORE?
To learn more about how OpenCorp can help you invest safely in real estate to grow your wealth and allow you to live a free retirement, visit www.opencorp.com.au
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Nightcliff
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