Investing has indeed become essential for many people after the pandemic which taught everyone the hard lesson of financial responsibility and a safety net. Since then many people have been going out of their way to increase their income and take some of it to invest. But let’s be honest, investing is no easy task. There are so many options to choose from and there are multiple different types of investing. The most significant types are low-risk investments that yield low profits and high-risk investments that yield high profits.
Some of the most popular investment sectors are stocks, mutual/saving funds, gold, and real estate. These investing routes have been around for a while and most people have found a way to work with them. This is why these investments are a great opportunity for anyone looking for a passive income, especially real estate. Real estate is a relatively safer option where your investments rarely go to waste.
Real Estate About To Get Real
Property experts believe there is an amazing opportunity for investors looking to put their money into real estate. Now, most people will find it to be unbelievable since real estate prices have been at an all-time high since the pandemic but experts believe that there is no more room for interest rates to grow and rent will stay elevated. However, things can take a significant turn depending on what the Reserve Bank of Australia decides to do from here on.
Louis Christopher, Research Founder SQM, predicts that prices will start to recover in the second half of this year only if the cash rate set by the Reserve Bank of Australia continues to peak under 4 percent. As of now, the cash rate is sitting at 3.1%. He also believes that the country may lift up the rates in February and may even do it again in March due to rising inflation but after that, it will leave the rates on hold. The Reserve Bank of Australia is set to have its next meeting on 7 February while markets expect a peak at 3.5 percent for cash rate this year.
The founder and the managing director of buyers agent Aus Property Professionals, Lloyd Edge, shares his insight and states that though the housing market is met with a lot of uncertainty, it is definitely a good time to invest in real estate. Potential Buyers have the opportunity to choose from many options and they can even set their own terms while negotiating for a better price. This means to investors, it is the perfect opportunity to dip their hands into the real estate market.
The entire world is seeing a housing crisis as living expenses double while economies plummet. As many people step away from spending their money, it serves a good opportunity for investors.