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Investing isn’t just about making money once; it’s about securing your future over the long haul.

Sure, a one-time 50% return is awesome, but imagine a steady 7% return each year for 40 years. That multiplies your initial investment by a whopping 15 times! In this article, we’ll explore the secrets to achieving stable and impressive long-term property returns.

  1. Embrace the Long Game: It’s easy to get caught up in short-term noise, worry, and predictions. But to truly succeed, we need to look at the bigger picture. Fundamentals rarely change, and that’s the key to long-term property returns and prosperity. Don’t let temporary fluctuations distract you; keep your focus on the long game.
  2. Invest in Locations with Robust Fundamentals: To achieve a persistent capital growth rate of approximately 5% p.a. above inflation, it is essential to invest in locations with strong fundamentals. These fundamentals ensure that demand consistently outstrips supply over extended periods, leading to sustained capital growth. Identifying areas with favorable economic indicators, infrastructure development, and desirable amenities can contribute to long-term success.
  3. Wealth Inequality and Its Impact: It’s no secret that income and wealth inequality are on the rise worldwide. The richest 20% of Australians own a staggering 63% of private wealth, while the lowest 20% possess only 1%. We all agree that this imbalance is unfair, but reversing the trend is a complex challenge. Understanding this reality can help you make informed decisions while navigating the investment landscape.
  4. Population Growth and Demand: In Perth, Western Australia, the supply of houses in blue-chip suburbs is limited. However, the population is growing at a significantly faster rate compared to other developed economies. This trend fuels the demand for properties in sought-after locations like Mount Claremont. The ability of wealthier individuals to pay more, combined with limited availability, influences the market dynamics and drives property values higher.
  5. Invest Smartly Based on Supply and Demand: To play the long game successfully, focus on areas driven by the fundamental principles of supply and demand. Avoid investing based solely on short-term trends or fads. Focus on areas where supply is constrained, while demand remains strong due to population growth, infrastructure developments, proximity to amenities, and desirability factors.

Deriving stable and attractive returns from property over the long term requires a strategic approach that prioritizes long-term fundamentals over short-term fluctuations. By embracing the principles outlined in this article, investors can position themselves for sustained growth and financial success. Remember, playing the long game in property investment is about selecting the right locations and resisting the temptation of quick gains.

Delve into the nuances of recognising a superior property and receive expert advice for a smart property purchase by clicking here. Alternatively, if you’re ready for personalised assistance from buyers agents Perth, don’t hesitate to reach out to us through our contact page.