Rising interest rates, crashing stock markets, cost of living crisis, global conflict – it’s clear we’re living in a period of economic uncertainty. In times like these, it’s more important than ever to think about real, tangible investments like property.

Property has been a favourite investment in Australia for many, many decades. A stable, reliable investment, property has, over the long run, drastically outperformed stocks and bonds and produced very few losers – even during times of economic uncertainty.

So, how can you protect your interests during economically difficult periods, and actually make the most of these periods with real estate investment? Here, the experts in investment property buying at Patrick Leo explain:

How does real estate protect you from economic uncertainty?

Property is the lowest-risk investment. Property prices has almost never dropped significantly in Australia’s history, instead climbing higher and higher. So, if history is anything to go by, property investment is the best protection against economic uncertainty.

Why? Because houses, units, shops and warehouses will always be needed, no matter what. In a financial crisis, people don’t need to buy coffee from Starbucks or a brand new Ford, for example, but we do still need a place to live. The fact that property is essential to our lives makes it an investment that’s almost entirely protected from economic uncertainty.

How to weather economic uncertainty with property:

But weathering economic uncertainty isn’t just as simple as looking at a property and then buying it. There are good investment properties with high yields, low up-front costs and low vacancy rates, and then there are properties which could actually hinder your financial position in times of economic uncertainty:

  • Focus on cash flow and saving for a deposit

    With interest rates on the rise, focus on saving for a nice, chunky deposit. Increase cash flow by locking savings in high-interest bank accounts.

  • Focus on investing in affordable, low-vacancy areas

    To safeguard yourself from economic loss in an uncertain period, we’re ideally looking for areas that are affordable with high yields and especially low vacancies. Check out our top 10 Australian suburbs for growth and affordability.

A diversified portfolio

There’s a lot of strength in a diversified property portfolio, featuring houses, apartments, commercial and industrial property. While this may not be immediately achievable, it’s something to work towards as this helps you weather the economic uncertainty of regional market fluctuations and downturns.

Property investment can be your ticket to financial freedom, even in the hardest of economic periods. But to achieve this, you need expert guidance and discipline. That’s where Patrick Leo is here to help. Our team of professional investment property buyers help you acquire property which improves mid-to-long-term financial position without impinging on your lifestyle. Get in touch with our expert team to learn more.

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