Dec 10, 2018
Are you wondering what’s going
on with the property market – whether you should buy, whether you
should sell, how your property portfolio is performing?
The media is full of mixed
messages, so no wonder you’re confused.
There’s no doubt we’re at the
next phase of the property cycle, what some call the slump phase.
But not all properties are slumping.
Today we’ll talk about what you
should do as a property investor in a buyer’s market and which
types of property will hold their own. We’ll look at previous
cycles and research to determine which properties do better in a
I’ll also share a mindset
moment, with a mentorship lesson from my own mentor Jim
Then we’ll have a chat with
Ahmad Iman, Director of Metropole in Sydney, about what investors
are looking for in terms of their financial goals.
Which properties will outperform in a buyer’s
property market began to slow down around the middle of last year.
Now the market is much softer.
happens next is dependent on finance and consumer
- Property values in some areas of Sydney and
Melbourne may keep falling until sometime next year, but not by
more than 5%. However, investment grade properties are not falling.
They’re holding their value.
Perth property market is likely to bottom out sometime over the
next year or so. Its recovery is likely to be slow.
- Hobart’s strong property growth is likely to
- Brisbane will probably be the strongest
property market over the next couple of years
- Investment-grade properties and A-grade homes
are holding their values even in the weak parts of Melbourne and
you’re a homebuyer, your family needs should dictate when you buy
your next property. This is a good time for first home buyers to
buy a new property or for established home buyers to trade
you’re interested in investing, the best time to buy is when you
have the financing to do so and the situation fits in with your
long-term plan. Don’t try to time the market.
How do your goals compare to other
clients have an end goal of financial independence.
- Beginning investors are looking for a property
profile that generates $100,000 in passive income per
average Australian couple needs about $40,000-$50,000 just to live
a modest lifestyle.
- $100,000 a year gross is very different from
$100,000 a year net.
- Another common goal is 4 to 5 investment
properties by retirement age or financial independence
size and value of your asset base and the quality of your
investments is more important than how many properties you
- Experienced investors often have a goal of a
property portfolio that generates close to $200,000 in passive
income per year.
important to consider your own existing lifestyle and spending
habits when setting a passive income goal.
sophisticated investors look at purchasing developments or blocks
of units to renovate.
Links and Resources:
Metropole Property Strategists
Rich Habits Poor
Michael Yardney’s Mentorship
Michael Yardney's Property Renovations and
Ahmad Imam – Director Metropole
Some of our favourite quotes from the show:
“And as always, steer clear of
the many property spruikers that are disguised as investment
advisors but who are actually working for the project marketers or
the developers.” –Michael Yardney
“Even the experts can’t time the
market.” –Michael Yardney
“As an investor, you need to
take a long-term view, do your homework and research carefully and
make sure you don’t overpay, and go out and buy that property today
– the sort that you would have had to fight much harder for a few
months ago.” –Michael Yardney
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