Prices are really starting to slump in some areas and other areas, are experiencing smaller price drops.
It can be very hard in this type of market, to know what types of properties will depreciate at a slower rate than others.
You can however buy well, if you have a sound long term plan and you take advantage of the fact that there will be less competition around.
We asked our property strategist friends and they told us that the following points, they consider the most crucial, for investors to remember in this type of market :
• Avoid the top end of the market- these are experiencing the biggest falls at the moment
• The same as above for the lower end of the market, where wage growth will be stagnant
• Avoid off the plan and high rise- these have body corporate and strata fees
• Look at the suburbs that are gentrifying and where incomes are high
• Don’t buy property for an instant large return, it probably won’t happen in this type of market
• Look at properties that you can see yourself hanging onto for 20 years or so
• Self manage with platforms like RealRenta and save thousands
• Look at areas with plans for massive infrastructure upgrades as this will affect the level of demand in that area
Trial RealRenta for Free now and see why so many of the smartest property investors in Australia are self managing with RealRenta
Friday, 19 October 2018