Looking to invest in property? Figuring out the best time to dive into the market can be challenging...  

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Property investment is widely known as one of the more secure investments you can make. It’s a tangible and less volatile option so people tend to feel safe making this their choice when financially planning their future.Investing in property has grown significantly in Australia over the past few decades.

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With interest rates remaining at record lows this has driven up demand and enticed buyers into the market. But when exactly is the best time to invest in property?

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When is a good time to invest in property?

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Put plainly, there is no perfect time to invest but there are two main factors to consider:

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1. The Market Conditions (outside your control)
2. Your Financial Situation (inside your control)

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Market Conditions and Timing

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Making a decision to invest in property is largely driven by the market conditions of the time. And, those conditions can vary widely depending on the location. It’s important to look to invest in locations that can deliver long term returns, where the value of the property increases over time.

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These kinds of things are not really in your control and whilst we can make predictions on what’s going to happen, nothing is set in stone. It’s therefore important to manage the things that we can control - your own personal financial circumstances.

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Handle The Numbers

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Having a good handle on your numbers and understanding what you can afford to borrow is number one. You don’t want to bite off more than you can chew or in this case, borrow more money than you can realistically afford to pay. The more money you have saved for a deposit also means less you'll need to borrow and pay in interest.

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It’s important to ensure you are borrowing at a level that leaves you comfortable meeting repayments, even if interest rates rise. Before you dive into looking around for the best mortgage lender, you also want to ensure that you have reduced your debt to the minimum. So getting rid of and paying off things like credit cards or car loans will help towards securing the best rate, allowing for more wiggle room and potential borrowing capacity.

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You want to be in the best financial position possible when making an investment and your earnings should reflect that.

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‍We’ve outlined some of the main steps to becoming a property investor in this article - 6 Simple Steps to Becoming a Property Investor

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How many people invest in property in Australia?

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According to the ATO, around 20% of Australians invest in property with the majority of those that invest in the age group of 50 years and up. This is changing however as younger people enter the market and take advantage of things like government grants to purchase their first property.

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‍Read more - 33% of the market self manage their own properties.

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Where are the best locations to invest in property?

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Location and tenant demand are the most important factors when choosing where to invest. It’s important to look for areas with high growth potential and strong rental demand. According to recent data from realestate.com.au, Queensland dominated the desired places to invest in property. This is no surprise however, as prices soar in places like Sydney, it’s made properties in the north much more attractive to buyers as they tend to boast more square footage for your buck. During the pandemic, the property market shifted significantly with people making the moves to more regional areas outside of cities.

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This consequently drove up the demand in those places. Now that things are returning to a sense of normality, it’s important to consider the long term sustainability of the housing market is in these areas. They might be an attractive option now but will they be in a year or two once things are settled?

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Cities like Melbourne and Sydney are still however seeing a lot of interest despite the shift in the market. This will likely not decrease much as the desire to live in big cities will always be there so renter demand remains high. Regional areas in New South Wales and Victoria however have seen strong growth with the trend in remote working and affordable living.

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Find out how much rent you should be getting for your property with our Rental Estimate Report.

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The property market tends to move in cycles with lots of ups and downs so there’s no real right or wrong time to invest. It comes down to your personal circumstances. Do your research and get professional guidance if you can. Owning an investment property means taking on a certain amount of risk and you’ll need to understand if that risk is right for you.

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At RentBetter we want to ensure you are maximising the return on your investment. If you own a rental property you could be boosting your income and saving on property management fees by using our tech platform. We’re empowering homeowners to take control and manage their properties themselves, completely online.

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Check out what the RentBetter platform can do for you and sign up here.