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To Invest or not to invest

This is the question I get asked by my clients all the time….

When is the right time to invest?

Is there going to be a property correction?

Will I lose all my hard-earned money?

We are in a property bubble!

The banks are not lending any money to investors!

The Property market is overheated!

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The above are often headlines in the newspapers, scare mongering, the sky is going to fall in and we will sail right off the edge of the world……. As we all know the media loves a good headline stating the horror of what is about to take place.

What you need to do is take a step back and take an overview of the current property market. Like all investments there are times of boom and bust, or as I like to say opportunity. This is where you do your own research or taking on research that others have done, be careful as some companies do research to sway you into a property sale, so make sure you trust the person that is giving you the information.

In Australia, it is such a big place that there are many different markets. For example, there is the Sydney market and within this market there are suburbs and even streets with different market conditions and you need to understand supply and demand for each area. This market it totally different to the Queensland market and Victorian market. Like lots of the commentary around the country Sydney has been the hottest market and is coming to the top of its cycle, however there are still opportunities and advance strategy deals you can do; but you need deep pockets as the prices are so high – with the medium house price now above $1,000,000. Then you have Brisbane market where the medium house price is just above $500, so there are still opportunities to buy great properties close to the CBD or in large growth areas.

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You then need to look at the market and do your research and look at your budget, which city in Australia is going to go next? Sydney traditionally goes first, then Melbourne, Brisbane and Adelaide. Western Australia, Tasmania and Northern Territory tend to move depending on external factors such as mining, tourism or some big infrastructure project. So timing is the key, if you are looking to buy an owner occupied property then a whole lot of other factors come into play, but Iā€™m only talking about investment properties.

There is always time and opportunities to invest, and if you do an advanced strategy investment, such as a dual occupancy property, duplex, splitter block, small lot subdivision or mini development then it is always the right time to invest. If you are buying and holding for the long term then the decisions you make when you first invest are crucial to get faster equity uplift.

Do your research, use trusted parties and form a team of experts that can get you on the right track. Swim against the current and look for those opportunities, know your numbers and borrowing capacity (especially now that the banks have been changing the rules). As always – I am happy to chat about your property goals and current projects, a friendly ear to run your ideas past or to help with any finance deals or property purchases, talk soon.

Cheers Chris