Winning in Todays Property Market
You will hear lots of stories (and indeed stats) about the downturn in the property market, and how it is harder to navigate and to make money.
All of that might be perfectly true. But do we have to agree with it? Definitely not. Even in a depressed market, there is money to be made, great deals to be made, and success to be had.
The first and most obvious point is that if you have the opportunity to, it is a great time to start buying up property. Get your investment drive on. Worried about how low the market can go? It’s not going to go that low that you are going to lose money, particularly if you take an appropriate medium-long term ownership view. Melbourne, Sydney and Brisbane (actually all our capital cities) show strong population growth. And that is not going to end short of a catastrophe. So that means that whatever happens, there are lots of people that are going to be looking for an apartment or a house to live in.
Buy investment in those growth areas. That’s where people want to live. Facilities are going to continue to be built. Roads are going in. People are going to want to live there (in fact, they want to live there right now!).
You may have to ensure you have a good property to start with – one that people will want to live in and is an ideal size for tenants (too big and it will price many out of the property, too small and it won’t be desirable to live in).
These are the key – buying in the correct location, and buying a property that is easily rented out. This is not the time to be buying unusual properties or a property that is more speculative. Think safe, low risk, and you will still be able to make money.
And if you get this right, your property will make you money now, and do even better into the future.
The final point, and possibly the most exciting, is that you can start to pick up bargains. there are properties around where the owners must sell for one reason or another. Make sure the reason they are selling is understandable by you – that it’s not because the property cannot be tenanted for some reason, or there are expensive repairs needed. Look for a property that has not sold at auction and the owners may be willing to do a deal. You might be able to buy at terms that are very favourable to you, giving you time to get tenants in without losing any money.
Look too for a property that might rapidly increase in value as the market returns. It may start to happen faster than you think, and if the past is anything to go by, that increase in value will be considerable.
At this time, make sure you do your homework. Don’t take anything for granted, and my advice to you is that your gut instinct may not be enough. Look at the property thoroughly. Check out the tenancy history, look at the trends in prices and take-up rates in the area. And don’t be afraid to do a deal. In a time like this nothing is off the table. Sellers may be desperate to sell in some cases, there is plenty of properties for sale on the market (this does not always show in traditional figures as vendors take a property off the market, but it is still very much for sale).
If you feel unsure about these points, but you would like to get into the market right now then, by all means, speak to a professional. There are many very good people that are expert in this field and know how to navigate the market whatever the economic situation.
I am more than happy to put you in contact with just such a person if you require.