Author and Property Market Commentator
There is no shortage of real estate success stories that get shared around the family barbeque, especially when the family happens to live in a booming market, but investing in bricks and mortar isn’t a “fool proof" strategy. Like all quality investments it demands you do your homework in order to receive the top marks results, because not all properties are created equal. So with this in mind the question remains… Is Australian property as safe as houses?
In order to protect yourself from any potential investing disasters and invest as safely as possible it’s really a matter of minimising risk from the outset.
According to a recent editorial released by realestate.com.au only 18% of property investors manage to acquire two or more properties, and only 1% buy five or more properties. There is definitely no one reason for this, but having a sound investing strategy with the right team of professionals to assist you, can be a big part of this.
Investing safely and following some key principles can fast-track your investing success. If I had to pick just one key principle to highlight I would say this… “Remain unemotional”.
A-Grade investors are able to make rational decisions and avoid getting caught in the hype that often costs them dearly when their hearts over-rule their heads. If you get this wrong at the beginning then it can be an uphill battle right from the very start.
At my next live event I go through my personal investing blueprint, divulge how my team and I choose the right property types and where the “7 o’clock” markets are. To claim your seat, click the link below.
Another tip for those looking to build a strong foundation for property investing is to avoid oversupply.
The aim of any investor is to purchase where the supply of properties is falling behind the demand. One of the first things an advanced investor would check is the local vacancy rate (the number of vacant properties available to rent compared to the total number of rental properties in the area). This will help them get an understanding of the current over or under supply situation.
Ideally this vacancy rate should be no higher than 2 - 3%. In many areas that I target it would not be uncommon for vacancy rates to be at or below 1%.
A-Grade investors are looking at the amount of property stock set to enter the market in coming months and years. This is particularly important if entering the high-rise unit market, which has a growing risk of over-supply in many cities today.
The idea is to not only try and position yourself for the most capital growth, but to also select a property with the highest demand from tenants to ensure that your investment is always producing income.
My team and I have developed and honed an investing blueprint over the past 25 years. We’ve used these set criteria to help clients select growth property markets with a 100% accuracy rating and have achieved some fantastic results. To learn how we do it click here to register for my next event now.