Perfect time for investing

BY BEN JOHNSON
johnsonbeggstnewsltd.com.au

NOW is a good time to invest in property, says a leading independent property expert. RP Data research director Tim Lawless said home prices were unlikely to get much cheaper, making it a prime time to invest.

"Cyclically the market is likely to be at or close to the bottom of the cycle, which means further declines aren't likely to be significant," Mr Lawless said.

Despite dwelling values tracking backwards, rental markets had shown gains.

"The combination of these two trends has driven up rental yields for investors, with the typical Brisbane unit providing a 5.3 per cent gross yield," he said.

"While capital gains remain subdued, investors really need to focus on maximising their yields."

He said investing in property was tied to the cyclical nature of the market.

"Over the average hold period of a property, which is generally around seven years, home owners are likely to experience periods of strong value growth, periods of relatively flat market conditions and even periods where values fall like they have been over the past 15 months," he said.

Grow Consulting Group managing director Ayda Shabanzadeh said potential investors looking to make money within the first two years should think again.

"It's a long-term strategy," she said.

Ms Shabanzadeh said the biggest financial pitfalls facing investors looking to broaden their portfolio was their borrowing capacity.