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I don’t think so – for reasons I will explain.
Investors feel more comfortable buying in their own backyard. They feel they understand their local market and it’s easier to inspect and check things out.
Buying interstate is more challenging. It presents the problems of how to research an unfamiliar market and how to check everything from a distance.
Those problems are multiplied when the market is hot and properties are selling fast, often for higher-than-expected prices.
That’s where a good buyers’ agent comes in.
Now, more than ever before, investors need a trusted advocate on their team.
On Wednesday 9 March, national buyers’ agent Alex Dutt from Adviseable joined Hotspotting founder Terry Ryder to discuss the issues of buying from a distance in a boom market.
Dutt and Ryder discussed …
And if it’s a Government in Australia we all know what that means – another property tax.
It’s the Victorian Government this time, which has introduced yet another new tax on the housing industry.
Another impost which just makes the cost of new housing even more expensive for the end use – which often means first-home buyers.
Instead, day after day, week after week, month after month, we have to endure this endless speculation that interest rates are going to rise and, as a result, property prices will crash.
The speculation is driving everyone crazy, and I can understand why.
The endless commentary about when interest rates are going to rise and what it will do to the market are just that, it’s commentary.
It’s pure speculation, not news of substance.
Property investment outcomes don’t get much better than this.
You sign a contract to have a house built and before the house is completed its market value is 15% or 20% higher than the cost of the house-and-land package.
Property investment specialist Danny Buxton of Triple Zero Property Group says scenarios like this are far from exceptional in the current market climate.
The exceptional examples are where the house, on completion of construction, is worth 30% more than the cost to the investor.
Buxton says there are numerous current examples of this in nation-leading growth markets like South-East Queensland and Adelaide.
On Wednesday 23 February, Buxton joined Hotspotting founder Terry Ryder to discuss this method of investment in detail.
Buxton outlines …
But, having said that, there is one piece of regular research put out by the major banks which I believe is a must-read for property investors.
The State of the States report, published quarterly by CommSec, which is a division of the Commonwealth Bank, provides good analysis of what is happening in the Australian economy and I believe is a great indicator of where you might want to consider investing in real estate.
The latest report, published in the past week, has attracted massive media coverage across Australia, particularly because the report is forecasting a 9-10% decline in property prices next year.
In our day-to-day research at Hotspotting, we’ve seen all the articles written about this report.
And I have to say it’s a damning indictment on the standard of journalists in Australia. Every one of the dozens of journalists who wrote an article on this NAB report simply presented the information in the NAB press release.
That’s wrong on so many different levels it’s difficult to know where to start.
The trend of people leaving the big cities and moving to the regions or the smaller cities has been under way for a long time.
Sydney has been losing population to internal migration for over 10 years and Melbourne has been losing population to people moving to other parts of Victoria for the past 5 years.
This trend is not about the pandemic – it’s about technology allowing people to work remotely and it’s about accessing a better lifestyle at an affordable price.
It’s a long-term trend and it’s here to stay.
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