The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.
In this weekly series of short videos, we discuss the common mistakes we’ve seen investors make.
Today we discuss if investors should invest on the basis that properties NEVER go down in value.
We know some property spruikers entice naïve investors to buy properties with the claim that property values always keep rising – but is that correct?
Watch as we discuss:
Each quarter Core Logic releases its Pain and Gain Report giving insights into which type of properties are resold at a profit or loss.
While the vast majority of properties sold in Australia deliver their owners a profit, some trends have emerged:
- Around 10% of all properties sold sell at a gross loss for their owners.
- The longer you hold the property the less likely this is to occur
- Apartments were more likely to sell at a loss than houses. This is most likely due to the high premium many investors paid for their new unit.
- More regional properties sell at a loss than those in our capital cities.
Currently, locations where there is a high supply of new apartment projects are likely to suffer with more properties selling at a loss due to the significant oversupply.
Places like the Sydney, Melbourne, and Brisbane CBD’s, Fortitude Valley, Paramatta, Harris Park, Homebush Zetland, Ryde in Sydney.
I would also avoid locations where the residents are more likely to suffer from mortgage stress.
These tend to be outer suburbs where young families have stretched their finances.
And as always, I would steer clear of the many property spruikers disguised as investment advisers but who are actually working as project marketers for developers.
They lure naïve investors in with their get rich quick schemes – but that’s not how property works.
As Warren Buffet said: “Wealth is the transfer of money from the impatient to the patient.”
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
A perfect storm is brewing for our property markets in 2021-22, and you can trust the team at Metropole to provide you with direction, guidance, and results.
In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award-winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results and more certainty. Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
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