Property investment has always been popular in Australia but is it the best place to put your cash now?

Property’s popularity is perpetual. And for some damn fine reasons! Well, nearly perpetual – there are times investors rightly shy away.

Like all asset classes where bubbles can develop, there are good times to invest in property … and some times when caution is required.

Some commentators suggest real estate might have run its race for now. After two to three years of strong growth in many property markets, have the easy gains been made?

Certainly, some strong gains have occurred in some markets. But there will always be sectors of Australia’s property market that are relatively undervalued.

Even within Melbourne and Sydney, where strong gains have played out, there are pockets that are, relatively, cheap. There are many areas that I would be happy to invest in right now.

Always remember property is a huge investment. Generally, you’re looking at a minimum of $400,000.

Understand the timeframes. Because of the entry (stamp duty) and exit costs (agent fees and advertising), property’s minimum investment period is 10 years. But preferably, you hold it forever.

To the question, it’s generally not your money being tipped in. The vast majority of money used to buy property should be borrowed from a bank, for tax purposes.

Getting those loans, and the structures of the ownership, right is crucial.

Property, because of its enormous leverage and direct investment, requires even surety to make sure your initial investment is right. It’s not cheap to undo a property investment.

Invest now? There are some very good opportunities to invest. But, very importantly, you need strict rules as filters.

Bruce Brammall is the author of Mortgages Made Easy and the principal adviser with Bruce Brammall Financial (


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