Purchasing investment property is one of the largest financial decisions an investor will make in their lifetime. The timing of the purchase is pivotal and can affect the short, medium and long-term growth of your property portfolio.
Understanding the 18-year property cycle is pivotal to the performance of not only property assets, but all assets in your portfolio. Many successful share traders study the property cycle to give them the buy and sell signals for shares, commodities and other assets.
Australia is a geographically large country with a diverse economy, and as such, each region can be in a different stage of the 18-year property cycle. This presents opportunities for educated investors to achieve above average capital growth.
When a property market is experiencing significant growth, it is difficult to find new properties at a similar price to an established property. In this market phase, the preferred option is to source a property through buyer’s advocacy.
Our initial meeting is to establish your needs and objectives. We work with you to determine which particular region has the drivers for superior capital growth. Our research methodology is well proven and second to none. All the facts and logic behind the targeting of specific locations are outlined and discussed with you.
After agreeing on suburbs to target, we then search for suitable properties within that location. The attributes of that property are summarised and after reporting back to you a short list, we will begin investigations and negotiations on your behalf to secure the property. Once a suitable property is purchased, we assist you throughout the buying process to ensure a smooth and stress-free transaction.
If you can purchase a new property for the price of a second hand one, why would you choose the older property?
You wouldn’t. In a market that is nearing the bottom or starting to recover, armed with the know-how and negotiating skills, it is possible to find these opportunities. New properties provide peace of mind with builder’s warranty, superior tax advantages and increased tenant demand which often correlates to higher investment returns.
The new properties need to be priced comparatively to established properties. Remember, the bank approved valuers will perform a valuation on completion, comparing the property to similar second-hand resales in the area.