The GFC left few unscathed as credit tightened, whole sectors of the economy shifted and many with supposedly stable careers found they were redundant.  The length of time involved and the lack of money in the economy rocked the confidence of many.

In a post GFC economy what are property investors seeking?

Transparency and professionalism would be close to the top of the list.

• A more insightful view of the fundamentals that support the property investment opportunity,
• A more tailored consideration of their financial, career and personal circumstances, and
• Education to support their property investment understanding.

Continuing Market Factors

• Lending institutions often contribute to reduced capacity to borrow as they set valuation criteria to their appetite for exposure rather than the borrower’s financial capability,
• Share market fluctuations create concerns about the stability and performance of various sectors, and
• Published superannuation returns are still diminished compared to pre GFC with a further insult from stock market reactions to the Japanese triple calamity.

What you can do as a Property Investor?

• Focus your property portfolio on capital growth to increase your equity as quickly and safely as possible.  Increased equity gives more capital and potential choices for property investment.
• Make considered career choices for stability and invest in yourself to maintain your career market appeal.  Criteria for borrowing have eased though they are still tighter than pre GFC.
• Consider creation of an SMSF to give closer attention to potential property asset performance and results.  SMSF have been growing at a compounded 20% over the last few years according to the ATO.  Recent changes in SMSF loan approval times, reduced from up to 16 weeks to as little as four, have given property investors fuller property investment market choices.

This gives you the best opportunity to add to your property portfolio as your funds and borrowing capability allow.