Last month we discussed some of the Lending changes and the effects on investor-borrowings. While we anticipate some of these changes will wash through and dampen certain categories of the market, it's fair to say that it's still early days. Combined with the supply and demand imbalance we face during winter months (in relation to stock shortage and relative numbers of buyers per sale-property), our market is still very strongly tilted towards a Seller's market. A recent Spotlight article focused on this Winter stock shortage and the need for buyers to put seasonal fluctuation into perspective.
Media reports are confusing buyers and investors on a daily basis. The B-word features in the papers daily, while record-breaking sales figures and continually climbing capital growth data challenge those who claim that the market can't get any stronger. We disagree with the 'bubble' sentiment and Amy's recent contribution to this article about the
Melbourne and Sydney market speculation is testament to our scrutiny of doomsayer claims.
While buyers need to be mindful of understanding their comparable sales values, adhering to the plan (and not emotionally over-extending), and calculating the cashflow shortfall that the purchase could create - they also need to temper their caution with pragmatism.
Timing the market is one thing - but
time in the market is what every investor should focus on. Property can't be a short-term, get-rich-quick venture.
We absolutely endorse a "buy and hold" strategy wherever possible - and we pay particular attention to cashflow, rental potential, vacancy rates and the selection of properties
tailored to every purchaser's needs. One size does NOT fit all.
So for those who read conflicting media reports and feel confused about the status of our property cycle and the chance of a downturn; we encourage you to understand
what it is that is driving our market growth, all threats to that driver, and
how you can protect yourself as much as possible from risk. From buying in tight vacancy rate areas, fixing interest rates, maintaining tenancy agreements, to having the right insurances in place; risk-mitigating options do exist.
This month, Cate's interview with Kevin Turner focused on off-market opportunities and how
buyers can purchase at or below market rate.
Cate's article on Why
Some Properties Don't Pass the Valuation Test featured on Smart Property Online this month and is particularly poignant for those who have found themselves considering risky investments with potentially high returns or unusual opportunity.
Amy's published article focused on
Bargain Properties and why some bargains are
not great opportunities after all.... a fantastic read for anyone who finds it hard to discern value from 'cheap'.
My favourite interview of the month was a call to reflect on some of my favourite historical "
Property Predictions Which Never Came True." So in keeping with our theme, enjoy this read - and remember that applying caution is important, but so is taking action. Fear makes for a great story, always.
The three case studies below are just
some of our favourite June acquisitions for our clients. From sea-change buyers, off-market deals to post-auction pounces, we've had an exciting end-of-financial-year month.
