What a start to 2019!
It going to be a busy one and we have all only just got back from holidays. Hope you all had a good break and feel refreshed to make the most of 2019. I feel there will be a lot of opportunities that are going to become available.
I am still looking at the growth areas, such as Brisbane, Sunshine Coast, Gold Coast, Newcastle, Central Coast NSW and outer areas of Melbourne and Geelong. This is where I think you’re going to see the best growth. However how about you manufacture the growth on a property deal and then it does not matter what the market is doing. It all comes down to your strategy and goals.
While some people put their head in the sand with all the media gloom and doom about just about everything. I have nearly stopped watching the news as it does not appeal to me and they love to sensationalise everything. Not just the property market. We have all heard it the market is going to drop 40-50% well I’m not going to wait for all this to happen as I think the media will find one sale that has been a 40% drop so everything has dropped. Sure, the markets of Sydney and Melbourne are probably in for a 10% drop, but they just had about 150% increase so if you have owned property longer than 5 years your way up. This might be the right time when it bottoms which no one quite know when to buy a blue-chip property in these markets but watch out for the yield it could be as low as 3%. I would be wary of units and off the plan unit sales there are only a few areas and developers that I like here, Sunshine Coast and Gold Coast mainly.
As some people will choose to do nothing or sell up everything, I think in the long run you will end up depleting all your cash, I don’t know if investing it in the stock market would be such a wise move either. I wonder if anyone has said to you “The risk of doing nothing is sometimes greater than actually doing something”.
While others sit on the fence and wait for the market to so call crash, there are other people still investing and making money from property. You will need to do more research but remember everyone still needs a place to live, we are still going to eat, send out kids to school, drive our car, go on holidays and work in our jobs. Currently the unemployment rate is still sitting around 5% and the standard of living in Australia is very high so there is not going to be a massive implosion, we have recourse loans here in Australia, so you are tied to the debt and the property not like in USA. I think the biggest issue this year will be lending from the banks, so if you’re going for lending make sure you have all your boxes ticket and get ready to show them your statements.
I’m looking forward to an exciting year, my kids are both playing National Premier League (NPL) soccer which is exciting, Luka my son has entered the business so I can start to mentor him and he is studding marketing at University of the Sunshine Coast (USC) and Carlo starts high school so the Pullen’s will be very busy.
Look forward to talking to everyone and helping them through the property minefield and helping you achieve those property and life style goals in 2019.