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To Buy or Not to Buy?

09 Oct 2018

The lending landscape in Australia certainly has changed a lot over the past 12 months and there has been an increased focus on the serviceability of loans, and talk of some investors needing to sell when their interest-free periods expire. The question to ask is: is this the type of property I should be buying and are they worth waiting for?

The inner areas are not typically impacted in the same way. Of course, this very fact underpins why we invest here in the first place – because quality property in good areas is effectively “market-resistant”.

 

-       There is always demand for quality property, the next step is to make sure you are able to identify it. We focus only on properties that will perform well in flat markets even if vendors are stressed, there will always be competition for their properties when they sell. This means that there won’t be any quality bargains to be had.

 

-       We inspect only 10% of the available properties and then we would only focus on 20% of what we inspected. If average property is available at bargain prices, we are unlikely to be tempted.

 

So Should I Buy OR Not..?

-       BUYING TO LIVE IN

Whether it be your first home, an upgrade, downsize or relocation, the question you should ask yourself is: Are you really going to put your life on hold in case a market crash and would it help you to get a better deal in a market?

 

-       BUYING TO INVEST

Warren Buffet said once “Someone’s sitting in the shade today because someone planted a tree a long time ago.” Property investment is a long time game. It is critical that you buy a quality asset that will actually grow in value in the way you need it to.

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