Firstly, Merry Christmas! This time of year can be a great opportunity to take stock of the year gone by as well as making grand plans for the year to come. For many, 2016 continued it’s impressive run of property based growth, and for those who have enjoyed this result as they’ve entered the last few Christmas periods it has them asking the question - “Is Australia’s Property Market about to crash?!”.
Many of my followers have heard and read my concerns about specific property types in over supplied areas and the dangers they are sure to bring as time goes on. But please don’t confuse these concerns with a fear that the Australian property market is about to crash. That is simply not my belief.
I will, however, confirm that this is a very tricky time for investors to navigate safely and effectively when selecting their next investment property. The good news is that Australia has hundreds of property markets and whilst there are always markets that are fast becoming too risky to consider, many others are perfectly positioned for solid and reliable performance.
But what property markets worry me most you ask?
Essentially it’s the large number of postcodes that are on the verge of an extreme oversupply of apartments, where the quality of the product is decreasing as the quantity of apartments is increasing. In some cases this is happening right under our noses in some of the largest markets of Australia. I will be outlining exactly what investors need to look for to avoid potential financial ruin at my complimentary live events in 2017.
Perth was the first apartment market that caused me concern 4 years ago when I noticed that it’s CBD oversupply was affecting ‘fantastic properties’ 15km away. My radar has been on full alert ever since.
Today I’m most concerned about Melbourne and Brisbane. Melbourne will most likely muscle it’s way through, and the pain could be somewhat short term, but Brisbane is a real worry and I fear thousands of trusting, time poor investors are in for 20% to 30% fall in apartment values plus very high vacancy rates over the next couple of years.
I hate to be the bearer of bad news if you currently own property in these markets, but please also be aware that 2017 will bring with it some fantastic growth opportunities that I am genuinely excited about.
So please enjoy the holiday period with friends and family, as I know I will be, and in 2017 I will be back on the road at my free events telling all who will listen about where the trouble spots are, and where the really smart money will be spent in the year ahead. To reserve your seat, click here now.
Merry Christmas and a happy and safe New Year.