Property prices across Australia have steadily risen in the past few decades, and if the past couple of years have shown anything with regards to property, it’s that the global pandemic has only caused real estate prices to rise even further.
As of July 2021, property prices have risen by a staggering 15% over the past year, reaching record 32-year highs in April 2021. For current homeowners, that’s great news. Not only is the property worth more than what it was likely purchased for, but it also means that the property can be resold for sometimes massive profits.
High Property Prices: Good for Every Australian?
Whilst rising property prices are certainly beneficial for current homeowners in Australia, those who are considering the purchase of real estate are being rapidly priced out of the market. This phenomenon is happening in many developed nations, not just Australia, but it’s posing unique challenges for first-time homebuyers nonetheless.
This begs the original question: is it too late to invest in dual occupancy homes in 2021? For those unable or unwilling to make the initial deposit (‘down payment’) on a home, it will always be too late. That’s why it’s essential to either find a guarantor to act as collateral for a home loan and/or to save up enough to make that initial deposit if you want to get on the property ladder.
Will My Investment Pay Off?
As with all investments, there is an element of risk in real estate. Historically, however, property has long been an asset comparable to gold. It holds its value exceptionally well, whilst normally only going up over time, often combatting inflation.
For these reasons, dual occupancy homes have exploded in popularity in Australia. Whether you intend to live in one unit and let out the second to a tenant or to a family member, or you intend to let out both units to maximise passive income, there’s little doubt that your investment will pay off well in the long term.
Are Dual Occupancy Homes a Safe Investment?
As mentioned, property in general has historically been shown to be amongst the safest investments one can make. Dual occupancy homes are especially lucrative at the moment in Australia and are only projected to continue booming in popularity as the housing supply continues to be bought up and developed property ownership becomes scarce (thus raising house prices even further).
Although you should ideally speak to a financial advisor for financial advice, it is fairly safe to say that dual occupancy homes are about as sure of a bet as it gets these days.
Not only will property prices likely continue their upward trend, thus increasing the value of your investment (capital gains), but the issue of inflation should also give some impetus towards diversifying away from cash holdings.
During the global pandemic, central banks around the world have been diligently printing money to stimulate the economy, thus causing inflation as is becoming evident in Australia and other developed nations.
For all of the above reasons, it seems that 2021 is indeed the right time to get on board with the dual occupancy boom and to invest in quality real estate.
Consult with us at Trevor Homes for all things related to dual occupancy home ownership in Australia. If you can dream it, we can design and build it.