Why You Should Buy an Investment Property in 2022

As the economy – and income and profit circumstances – improve, individuals have a lot more confidence about investing in property," says Hayden Groves, national president of the Real Estate Institute of Australia.

During the epidemic, property prices rose across the country, and while supply remained limited in important cities, buyer demand remained at an all-time high thanks to government incentives. And for those who have already purchased, the price of their properties has increased so much that many are using the equity to invest even more.

Property Trends in Australia for 2022

This is perhaps the finest opportunity for Australians to put their money into real estate. Borders have opened, unemployment is on the decline, and pandemic immunity has improved, making the perfect environment for an expected boom in Australia for 2022. Having said that, unanticipated incidents can happen that might change any property market projection, but we believe the following trends will continue to affect the property trends for 2022.

Property Prices Will Continue to Rise

Property prices are estimated to continue to rise. Future buyer demand will have a significant impact on this. Near the end of the year 2021, demand was outstripping supply. Prices were being pushed up by the following trends:

·         Investors Optimism

·         Lower Interest Rates

·         Favourable Economic Development.

We anticipate that this year, investors will have some excellent buying opportunities that will provide superior long-term growth. Several locations are set to enjoy capital growth potential as a result of diverse government spending.

Rental Yields Will Rise Exponentially

During the peak of the global COVID-19 pandemic, many tenants and renters moved in with friends and family for emotional and financial assistance. As Australia reopens, we are seeing increased jobs, stable income, and many people wishing to reclaim their independence.

In 2022, the rental supply shortage is expected to continue, giving landlords the option to raise rental income. We are already seeing it happening and this looks to continue for the rest of the year. Also, the long-anticipated reopening of overseas migration programmes is expected to increase the demand for quality rental properties which will consequently push the median rental prices higher.

Interest Rates are Anticipated to Increase Gradually

Job stability and income growth remain below average in the aftermath of the global pandemic. The Australian economy is still trying to make up for the losses it suffered between 2020 and 2022. Even when the economy and wages are still struggling, we predict the RBA will keep interest rates at their current historic lows to further support the economy. It won't stay at current levels indefinitely, but raising them drastically in the near future will be challenging.

Your Takeaway

In the year 2022, with careful and strategic planning, you will be able to uncover some outstanding investment opportunities in the real estate market. The beautiful thing about the Australian property market is that it has exhibited consistent long-term growth and is considered a safe haven to park your hard-earned money.

Are you looking to buy an investment property? arizabuyersagency.com.au is here to help you in your next property investment.

Reach out to us at our email address helpme@arizabuyersagency.com.au or visit our Contact Us page for a Free and No-obligation call back.