This much is true

There’s a basic financial management principle that goes like this: A dollar today is worth more than a dollar a year from now.

Otherwise known as ‘Time Value of Money’, this principle holds true despite market forces. Like, flip-flopping Government. Or population growth and migration patterns. You get the picture…

With this in mind, let’s look at some good reasons to invest in real estate, today. Or at least, be ready to pounce when you find the property that meets your investment criteria.

Property prices on the up and up
Property asking prices continued to rise for the month of June and were also up for the June quarter. See SQM research report.

Record low interest rates to stick around
Changes might be afoot in Canberra but the RBA is playing it safe, keeping interest rates steady at their record low of 2.75% p.a. for July.
The RBA Board has hinted that further cuts might be on the way later this year, with a rate cut in August tipped by half of economists.

Confidence in the market
The latest QBE LMI Mortgage Barometer report has found Australians feel more confident about buying property and its potential to build wealth.

Real Estate is a great long-term investment
Regardless of which recent economic crisis you look at, real estate is still a good, long-term investment. If you look back 30 years, real estate is still valued much higher than it was. And if you have tenants paying your mortgage it makes the investment that much more profitable.

Whether you plan to pay your mortgage as your primary investment, or are in the market as a property investor, the money (whether borrowed or saved) you have available to make that purchase will get you more today than it will in a year’s time. This much is true.