The property market is less volatile
than other investment asset classes such as stocks or mutual funds, especially
amid volatility.
Australia’s property market continues to be propped up by
the fact that close to 70% of properties are owned by homeowners and around
half of these have no mortgage against their home.
In fact, the total value of Australia’s residential real
estate market is close to $10 trillion and is only a total of around $2
trillion in debt against this.
Sure some young first homeowners have bitten off more than
they can chew when getting onto the property market, but they tend not to sell
up when things get tough – they would rather eat Maggi noodles than sell their
homes.
Of course, our property markets are cyclical, and at times
values slump a little, but it’s worth noting that these price drops are not
real losses until you actually sell the property.
Homeowners rarely find the need to sell up and
property investors should have a long-term focus and cash flow buffers to see
them through the ups and downs of the property cycle.
RealRenta has all the
tools that a property manager has but for less than ¼ the cost of a property
manager.
You can now manage your Residential, Commercial or share/student
accommodation property
Join now and the cost
is less than a cup of coffee a week to manage your rental property.
RealRenta also has a
free vision, so why not check it out.
Jason Gwerder
Friday, 10 January 2025
