Hi,
My understanding from the latest book (0 to $1,000,0000) is to avoid buying property in a downturn. I believe he mentions something like, anyone can make money in a positive property market, but it’s very difficult when there’s negative sentiments. And according to all the indicators in Australia, it looks like we’re in a down turn. Is this correct?
He also mentions that he wouldn’t be surprised if this soft market continues for another 10 years.
I realise that he goes on to explain how to turn problem properties into +ve geared properties, but his initial recommendation seems to be to hold off until things clear up?
cheers
The past couple of years have been tough for many real estate investors looking for ways to cash flow their properties. Many I speak to are worried about the stagnant markets and the downturn in some areas.
They often still want to get involved in property but are shying away from the conventional buy and hold strategies that have worked well for long term investors. They want to know, “What is the next big thing?”
And my answer is – “I don’t care.â€
You see…. if you have trained yourself to find deals everywhere and know how to create value where none existed, you don’t need to worry about what the next big thing is going to be. You can create it.
So while it would be nice to buy after the slump has bottomed, and our research suggests that Sydney, Melbourne and Brisbane are hovering around the bottom of their cycles, if you can add value through renovations or property development or buying considerably below market value, then timing in the cycle is not critical.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auhi hanibanna
couple of things to remember.
1. when theres a seller theres a buyer, in this market the buyers are getting the product cheaper so its a good time to buy.
2.if you have done your homework then yes I agree with MichaelYardney as this is the best market for me to work in and it may be a falling for some put nothing I am holding has fallen at all nor am I in a hold and watch.
3.I have just picked up a very nice site that is 34 units and rental pays land and build costs so there all posi when completed cbd Sydney 25k per unit under the valuation.
this is a funny market just like in a down turn in the share market you must know the product or area and the bottom value for that area and then when it hits that mark then you buy or if you expect it to get there then buy at that value.
not sure about melb and bris but in the sydney market I’m a very little fish put still can find the odd good site.
as for resi got a house at 360k in an area that the min is 550k and I haven’t decide to take it yet it below land value.
as for
He also mentions that he wouldn’t be surprised if this soft market continues for another 10 years. or And according to all the indicators in Australia, it looks like we’re in a down turn. Is this correct?again thats not in my indicators and I would like it to fall slower and longer, as rentals have not gone down and its the main indicator of demand.
this is my .002 worthhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]yes make the most of the opportunity to buy whilst the market is cool. The Perth market is running ahead so fast that is hard to even get offers in – not an environment for ferreting out good deals or development sites when you are competing against a long list of other buyers.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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