Biggest Changes To Property In Last 10 Years.
There have been many changes to the property market over the last decade, yet some things have stayed the same.
Here are the biggest changes to property that Nathan has witnessed over the last ten years.
1. Prices have gone up.
When he started buying in Western Sydney, houses were going for $150,000 to $200,000. The same properties are now worth around $600,000.
2. Interest rates have gone down.
Ever since they hit 20% in the 1980s, interest rates have generally dropped every time there has been a recession.
Now they are at a record low of 1.5%.
While many people are worried they will go up again, the pattern over the past 30 years indicates they may continue falling for some time.
Nathan believes they are headed for zero per cent or lower.
3. Rents have gone up in most areas.
While some suburbs have seen rents go down, most areas in Sydney have experienced a rise in rental rates.
4. Unwary buyers have been hurt by spruikers.
Nathan says that when he started investing, there was a strong sentiment that you shouldn’t buy interstate.
During the nineties, there was a spate of spruikers who would fly people interstate for free and lull them into buying overpriced properties.
Nowadays, with all of the comparison tools people have at their finger tips, it is much easier to figure out what properties are worth.
In recent times, spruikers have made a lot of money by encouraging people to buy in mining towns.
Others have been hurt through buying off-the-plan.
5. Attitudes towards buying property have changed.
Many Australians used to have an entitlement mentality towards owning property. They saw it as a birth right rather than something they had to be clever about.
Many people now have a “must-have” view of property instead. They see property as an asset that they need to work hard for.
6. Opportunities have changed.
Nathan used to do a lot of renovations in the early days.
Nowadays, he has a smarter mentality. Opportunities are always changing in the property market. While it used to be very profitable to buy a run-down house and invest your “sweat equity” into it, now, things have changed.
The trick with building wealth is to find the opportunities in both today’s and tomorrow’s market. Don’t get stuck in the past.
7. Technologies are changing.
Nathan believes we will see some big changes in the way property transactions are done over the next few years.
What hasn’t changed?
The whingers are still whinging!
Nathan says that when he started investing, people were complaining that prices were too high at $150,000 to $200,000.
They were saying that the market was going to crash and that they would lose money if they invested.
These people were fearful and didn’t take action – losing hundreds of thousands in opportunity costs.
The same negativity continues to proliferate in the 2017/2018 market. But, while whingers sit there whinging, savvy property investors are making a shit load of money.
Isn’t it always the way? Which one are you?
What changes in the market have you seen over the past 10 years? Please share your experiences in the comments section below.