We are certainly living in unprecedented times and with prolonged uncertainty comes prolonged inaction, particularly when it comes to investing in property.
Whilst we are trying to make sense of our ‘new normal’ it seems as though many aspects of our lives have been put ‘on hold’, investing being just one of them.
This is fairly normal when dealing with uncertainty and some people become paralysed by it, maintaining a holding pattern until life becomes clearer. In recent times there has been speculation about what happens when the Job seeker and Job keeper payments cease in September. Understandably, many were nervous about the prospect of millions of Australians being under employed or unemployed and potentially not being able to make ends meet.
Yesterday the Government announced that the benefits would continue into next year, albeit in a trimmed down version of the current payments.
With a little more certainty around future benefits and working Australians cautiously making plans about their future, some are looking to continue their goal of building a property portfolio.
For those investors in full time employment or have job security, now more than ever, it’s crucial to have a laser sharp Strategy and map out goals before making the next property purchase.
If the concern is a potential future lack of income or cash flow, then be strategic in sourcing a property that provides positive cash flow, before tax, to alleviate any future cash flow stress. These are properties that don’t cost any additional income but help pay off their own debt.
Those who maintain their focus on their goals and continue to invest will reap the long term rewards of investing. For those who wait, even a year or two, the cost may well be a portfolio with fewer investments and therefore missed opportunities.
The key to maintaining momentum is to hit the reset button, strategise and get moving on the next purchase.