Denis Mackenzie Interview
We interviewed Denis Mackenzie and put together the following piece on the property market in Australia in 2018:
Denis, why would you suggest property as a good investment for 2019?
Homes are valuable, and will only continue to increase in value in coming years, if you hold for the long term.
With the increase in demand for homes, owners are finding themselves in a win/ win position – and one that can allow them to turn a substantial profit in the future. Both property purchases and home rentals are on the rise, and this means that anyone that owns an investment property could stand to reap the rewards.
What are the reasons for this Denis?
There are several reasons as to why a person may choose to invest in a new property and these include:
- Purchasing a cheap property to renovate and then resell
- Investing in a new home to rent out to tenants
- Buying a new house to add to a portfolio and then sell when the time is right (and profits can be made)
Regardless of the reason for the investments, it’s fairly obvious to see that properties can yield a very high return on the initial expense. Home owners that purchased their homes in 2002 may have done so for as little as $350,000, only to find that the value of their properties (particularly within Melbourne and Sydney) has skyrocketed to well over $2 million in some cases, as of 2018.
Denis, what other factors influence the market?
And with the increasing demand for properties in Australia, experts have predicted that home values will be consistently on the increase – allowing those that invest now to potentially reap massive rewards in 10 or 15 years’ time. But as with all things, investments can pose somewhat of a risk; especially if the investor isn’t experienced in the activity and ends up purchasing a home that could cause them to lose out on their potential profit in the future.
We also asked Denis Mackenzie: Which types of homes are risky?
Any that are deemed to be unsafe to live in, those that aren’t subjected to property inspections before a sale, or any home that may not be as desirable as expected. In the latter case, studies have shown that most buyers and tenants will spend more to live in properties nearer to the centre of a town; with the most valuable homes being located in the suburbs. And the further afield one goes, the cheaper the cost of a home could be.
Interviewee: Denis Mackenzie