When the tide goes out

When the tide goes out

In a strong and/or rising real estate market pretty much anything sells even properties that are not well located, well designed, or built to a high standard. However in a flat or declining market only quality A and B grade property is highly desirable. It’s important to keep this in mind when you’re looking to buy. My advice to my clients is that it’s always better to pay fair money to secure a well located, quality home or investment property rather than buying a property that, well...simply just isn't.

In nine out of 10 cases, if you’re buying quite a bit below what other properties offering similar accommodation are selling for in the same or neighbouring suburb then there will be a reason (or three) why. Unless you can identify and fix those reasons then you will also be selling the property below market value one day too.

Worse still when you buy a below average property it will perform below average whilst you own it both in capital growth and rental returns which is a bit like getting 5% interest from the bank on your term deposit whilst other people at the same bank are getting 6%. Just think of the compounding loss you will be accumulating over time, it adds up quickly.

If you would like to have a conversation on the attributes of a quality, above average property versus one that isn't then give us a call on +612 9904 4722 or click here to send us an email. We know from over a decade of experience that our advice will not only save you tens of thousands of dollars when purchasing property but will also help you to generate much, much more in capital growth and rental income in the years to come.

Categories: Investment Property