How to Set & Achieve Your Property Goals in 2024 - February Market Update
January 31, 2024 / Written by Rich Harvey
Written by: Rich Harvey, CEO & Founder
The property market in 2024 looks set for continued growth underpinned by rapid migration, ultra-low building approvals, low vacancy rates, constant demand and limited listing volumes. However, the challenge of higher interest rates remains a strong dampener on demand. The first 6 months of the year look to provide the best window of opportunity for savvy buyers to take advantage of negative consumer sentiment before the market speeds up again the latter part of the year when predicted interest rate cuts will come into effect.
As we step into 2024, the real estate market presents both opportunities and challenges for those seeking to make property-related decisions. (Click here to see my 2024 market outlook). Whether you're a home buyer seeking your dream home or an astute investor seeking to grow your portfolio, setting clear property goals is the key to success. In this update, I outline six essential steps to set and achieve your goals in 2024.
1. Find Your Motivation
It’s important to understand what drives your property goals. You may already intrinsically know your motivations. But articulating your key motivations will help refine your goals and keep you on track.
Take a moment to uncover your why – and ask yourself “What is the purpose of buying my next home or investment property?” What is the reason I am doing this? Is it worth the effort?
Some of the key motivations I have seen with thousands of past clients include:
Providing for my family
Creating a safe space / a haven or retreat
Having children and needing more space
Finding a lifestyle property in a fabulous lifestyle suburb
Growing a portfolio of properties so that it sets you up with passive income for retirement
- Creating a legacy for my family /children. Becoming a philanthropist
2. Set your Goals and Strategy
Clarity is key when setting property goals. Begin with the end in mind and set realistic goals.
Success leaves clues – look at other successful property owners and investors and look to emulate what they are doing. I have done this myself.
Here are some examples of actual goals that we helped clients achieve in the past:
Upsize to a larger home with 4 bedrooms, home office, multiple living rooms for growing family, two car garage with workshop, backyard and pool.
Downsize from large family home into 3-bedroom townhouse closer to the shops and beach.
Buy first home in a growth area to get a jump start on the property ladder.
Find a knock-down rebuild block over 600 sqm, close to shops, schools and transport.
Buy a luxury apartment with harbour or beach views that does not need any renovation work.
Buy two investment properties at $1m and $700k respectively in high capital growth areas to add to their portfolio.
With a budget of $2m, buy a commercial / industrial property with net yield of 6%+.
Buy a luxury $6m home while living as an expat in Singapore.
Clearly defining your goals helps narrow down your search and makes the decision-making process more manageable. I have seen some people come with ambitious plans to buy $8 million of property and create a passive income of $400k from day one when they are on an income of $75k and then get frustrated and give up. Equally I have seen some people on $1m incomes do nothing for decades then decide to start investing in their 50’s as they were scared of debt or worried about property prices. Imagine if they had taken action earlier!
3. Sort out your finances
Before embarking on any property journey, it's crucial to conduct a thorough assessment of your financial situation. For home buyers, this involves reviewing your current financial standing and setting a realistic budget for your property purchase. Take a close look at your income, expenses and savings. For investors, its about leveraging safely and looking at mortgage repayments, rent, property expenses, maintenance, and tax deductions. Consider both the potential capital growth and yield to work out your ongoing cashflow position.
I highly recommend engaging with both a trusted mortgage broker and financial planner to get your goals on track.
4. Engage your A-Team
Trying to do everything on your own is impossible. You need to get your A-team of professional experts around you including – a buyers’ agent, mortgage broker, solicitor / conveyancer, building inspector, tax accountant, financial planner, quantity surveyor, and others. We have a great team of alliance partners that we can recommend.
5. Start Researching
With your finance pre-approval in hand now it’s time to start searching.
Local knowledge is power in the ever-changing landscape of the real estate market.
Home buyers should stay informed about current market trends, auction clearance rates, recent sales, volume of buyers, offers, days on market and many more factors. Explore different suburbs and consider areas close to shops, schools, transport and other key amenities. By conducting thorough research, you’ll empower yourself to make informed decisions that align with your lifestyle and preferences.
For property investors, quality market research is equally important. Identify growth markets and analyse rental demand and capital growth potential. Keep an eye on key economic indicators and future infrastructure plans that may impact the local market. Picking the right location is critical to the success of building your investment portfolio.
6. Stay accountable!
Achieving your property goals requires a strategic approach and a realistic timeline.
Establish clear milestones. For example, if you’re starting early in the New Year;
Review your personal budget, collate financial documents and submit to finance broker.
Get pre-approval by 20th February.
Set up meeting with your financial planner.
Reach out to establish your support team.
Feb – March: Commence the property search (or engage buyers’ agent to do this for you).
March / April – make offers to purchase property.
May – settle on the property.
Celebrate at a nice restaurant or weekend away.
Regularly monitor your progress and be willing to adjust your goals as needed. Being accountable to your financial support team is a good way to stay on track.
Celebrate milestones along the way, whether it's securing financing or successfully closing a deal. This positive reinforcement will keep you motivated and focused on your ultimate property goals.
As you consider your next property move, remember that success lies in the careful planning and execution of your goals. Just thinking about your goals won’t cut it. Implementation is the key that turns goals and dreams into reality.
To get a fast start into the property market this year, taking advantage of tougher economic conditions, please reach out to my team of professional buyers advocates today to start a conversation. Call us on 1300 655 615 or click here to make contact.