There’s lots of talk in the media about the market coming off the boil, clearance rates dropping and speculation that there will be bargains around the corner.
Unfortunately I don’t see it that way, especially if you are looking for median priced properties in the blue chip inner city suburbs around Sydney. You need to remember there’s more than one property market and it all depends on what and where you’re buying. Read more…
Louis Christopher from SQM Research released his Boom and Bust Report last week and he has predicted 4% - 9% Capital Growth in Sydney which is a great prospective result: it means that a $1m property might be worth close to $1.1m by the end of the year. However many media reports tried to sensationalise it the other way and we saw headlines along the lines of ‘Sydney to experience it’s biggest slowdown since 2012.’
Personally I’m happy if we get around 4% to 9% on average for the rest of my life.
Whilst I do take note of what the economists and the media are saying, I concentrate more on consumer sentiment for the markets and price range we operate in, as ultimately it comes down to supply and demand. We still have 2 – 3 times as many clients on our books, compared to more normal markets and there is still hardly any property on the market that ticks all the boxes.
As we still buy based on conservative valuation reports, we know that if the market does change, our clients are less likely to be affected as they haven’t paid the 5% - 10% premium that other people have paid at auction.
Property continues to be a long term game and those with a 5, 10, 20 or 30 year horizon know that investing in property isn’t about timing. It’s about buying the right property, at the right price, when you can afford it and when you can afford to cash flow it for the long term.
If you would like to have a 1 on 1 chat with us about your situation or circumstances, please drop us a line art 02 9994 8944 or firstname.lastname@example.org