Is 2022 going to be the year you start your property investment career? Perhaps you’ve already begun to build your portfolio and you’re pushing your investments to the next level? Wherever you are on your journey, it’s critical that you understand the property and investment loans landscape so you can make the right choice.

This year is already looking like the right time to invest in property. Read on to discover more about why this is the case, and craft your strategy for 2022.

Prices Are Growing Rapidly

A property investment is exactly that — an investment. With this in mind, market movements need to be top of mind when you consider an investment purchase.

The Australian property market is currently undergoing a period of growth, with property values growing rapidly. Between November 2020 and November 2021, property prices grew by 20.6% in Australia. If we look at Australia’s residential housing market in isolation, we can see that values generally tracked above this average, increasing by 22.2% in the 12 months leading up to November 2021. This translates to an extra $126,700 added to median values from the previous year.

While November 2021 saw only a 1.3% pricing rise — the lowest rise across any of the preceding 10 months — the outlook remains largely the same. In other words, we can expect property prices to continue increasing as we move through 2022, even if this rate of increase cools a little.

So what does this mean for investors? It means that properties purchased now are likely to increase in value in the coming years, delivering a strong return on investment when they are sold on. It also means that delaying a property purchase could see buyers paying more for the same property further down the line.

Why 2022 is the Right Time to Invest in Property | Sydney BrokersThe Rental Market Is Strong

Buying a property to rent is a common form of investment in Australia, and with good reason. The rental income received from the property can help to cover the mortgage or home loan payments, as well as other costs. Renting out a property can even help you to make a profit if you pitch your rental in the right way, further augmenting your return on investment.

The rental market is strong at the moment, which makes 2022 a great time to invest in this kind of property. A report from 2021 shows that rental prices grew by 7.4% in 2021 — the highest rate of growth in well over a decade. Almost half of that growth came in the fourth quarter of 2021, showing that rental growth continues to be strong.

Sydney posted rental growth figures at well above this national average, reaching 9.1% year-on-year growth. While Brisbane and Canberra lead the way in this field, the NSW market remains strong.

Mortgage Interest Rates Remain Low

Home loan and mortgage interest rates have been tracking at record lows for some time now, making 2022 a great time to make that property purchase. There is some urgency to bear in mind here — the Reserve Bank of Australia has said that interest rates are likely to rise before 2024, with some predicting that these rises will begin at some point over the next year.

It’s possible that interest rates will rise to 1% before the end of 2022, further increasing to 1.75% by the end of 2023. Acting sooner rather than later to take advantage of the current low rates is a top tip for buying an investment property.

You Can Protect Yourself Against Mortgage Rate Rises

It’s natural to be wary of the urgency discussed above. Buying an investment property is a big decision, and no one wants to be rushed into this. This is why mortgage pre-approvals and fixed-rate loans are so important in helping investors make the right decisions in 2022.

With a pre-approval, investors can protect themselves against potential rate rises, essentially locking in a fixed rate of interest on their mortgage. At the end of the pre-approval period, the investor can complete the purchase of the right rental property for their needs, without fear of exposing themselves to sudden interest rate hikes.

Find the Investment Loans and Funding You Need

Here at Sydney Brokers, we work with property buyers across the full spectrum — from first-time homebuyers to seasoned property investors. We help you to find the property loan products you need to achieve the right results from your purchase. Reach out to our team to get started on (02) 9160 76 54 or


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