This is the type of property that will lead the recovery in 2021 with Stuart Wemyss
Nov 25, 2020
There are signs that the modest coronavirus-induced housing correction has come to an end.
Nobody’s going to ring a bell telling us the market’s bottomed, but I’m sure when we look back in 12 months’ time, we’re going to find that the value of some properties has increased significantly and our property markets turned the corner in October 2020.
But as usual, some segments of our property markets will continue to languish.
Now I’m not denying that we’re still going to have some challenging times ahead. We are. But the recovery of our home values has been underwritten by a number of factors that we’re going to discuss in today’s podcast as I have a chat with Stuart Wemyss.
Stuart’s going to talk about what kinds of properties are going to lead the recovery in 2021 and why buying the right property next time around is more important than ever.
And then, in my mindset moment, I’m going to share with you one of the most important lessons I learned from one of my mentors as we talk about the miracle of personal development.
At the end of today’s podcast, I hope you’ll have a bit more clarity about what’s going to happen to our property markets inn 2021 and what you need to do to position yourself correctly.
What properties will lead the recovery in 2021?
The major media has done a backflip on their predictions earlier this year of 10, 15, 20, and even 30% drops in property market values.
One of the people who has forecast things over the past year and gotten it right most of the time is director of Prosolutions, Stuart Wemyss
Highlights from our conversation:
- The market didn’t take as much of a hit as many predicted that
it would this is because:
- The government absorbed most of the cost
- The people who were hit hardest by the coronavirus pandemic were mostly younger and lower income
- There are two major sectors to be concerned about:
- Regions dominated by low-income earners
- Inner city apartment markets
- The loan pause data shows that 9 out of 10 of the greatest loan
pause suburbs have been in southeast Queensland
- This might be because the area was heavily impacted by the reduction in tourism
- It’s also possible that most of the loan pauses are out of convenience rather than necessity.
- Since prices are down on the lower end of the market, why not
get in on that and get a bargain now?
- There are two types of tenants in rentals: lifestyle tenants
and necessity tenants
- It’s the properties occupied by tenants that rent by necessity that are on the lower end of the market
- These properties don’t offer much capital growth in the medium to long-term
- The tenants may be living week-to-week, which makes it less likely these properties will be profitable
- There are two types of tenants in rentals: lifestyle tenants
and necessity tenants
- Lending criteria will soon be lessened. This is a game changer for property markets
- Interest rates are low and probably going to stay low for
several years to come
- This decreases the risk of taking on debt and makes it more affordable
- Lower interest rates will probably have a bigger impact on the top end of the market
- Choosing the right first property is important because good decisions compound and lead to future good decisions
Links and Resources:
Metropole Property Strategists
Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us
Stuart Wemyss – Prosolution Private Clients
Stuart’s Book – Rules of the Lending Game
Some of our favourite quotes from the show:
“Interest rates are likely to have a larger impact at the top end of the market, the luxury end of the market.” – Michael Yardney
“Instead of asking about your work, your job, “what am I getting?” instead you should be asking yourself “what am I becoming?”” – Michael Yardney
“If somebody hands you a million dollars, you better hurry up and become a millionaire.” – Michael Yardney
Shownotes plus more here: This is the type of property that will lead the recovery in 2021 with Stuart Wemyss
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