Property the “hottest investment class” for the next five years: Mark Bouris

Investors should get their foot on the property ladder now while interest rates are low and heading lower and as the property market heats up, says Yellow Brick Road founder Mark Bouris.

“I think right now and for the next five years property in the major cities will become the hottest investment class you can possibly think of,” Bouris said in an interview on Channel Nine’s Saturday breakfast show.

Bouris expects the RBA to cut interest rates even further – below 2.5% - with borrowers getting bank mortgage rates at historical lows of between 4% and 4.5%.

“What [these low interest rates do] is reposition house prices upwards,” Bouris says.

“From now until about five years’ time house prices will go up quite a lot and it’s a good time to take the opportunity to invest in real estate.”

Bouris says you don't want to be entering the property market in five years’ time when you are paying the top price.

According to Bouris, property investing is a “cycle game”.

“You need to get in while the rates are coming down and make sure you are not paying the top price.

“Everything in business or investments  is all about your entry price or purchase price,” he says.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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