5 Property myths that aren’t true |7 Ways Australia’s property markets are different with Dr. Andrew Wilson

Our property markets have been on the move for a while now.  But some people are saying no, it’s all going to end, there’s still a property crash coming.  Others are saying that Australia’s property markets are different.  But are they really different? That’s what we’re going to discuss today with Dr. Andrew Wilson. But first, we’re going to bust another 5 property market myths so that you don’t get fooled. I also have a great mindset moment today.  At the end of this episode, you’re going to be a more informed property investor. Property Myths Busted Myth: Buying near capital cities is a certain money-spinner Fact: Capital cities are a good choice for investment-grade properties, but that doesn’t necessarily mean that properties there are automatically successful.  There will always be some suburbs that perform better than others. Some have socio-economic problems, some have better transport than others, and so on.  It’s a question of finding the right investment-grade locations and then the right properties in those locations. Myth: Property prices double every 7-10 years Fact: On average, that might be true.  The problem is that average means that half all properties double in value every 7-10 years and the other half don’t.   Markets move in cycles, and there are multiple property markets – depending on location, price points, and property types. There’s no guarantee that any property will double in value in 7-10 years. You have to do your due diligence. Myth: You can’t lose with property Fact: Yes, you can.  Not every property is an investment-grade property. Succeeding in property has to do with choosing the right property, in the right location, at the right time, and for the right price.  Myth: Houses are a better investment because of their land component Fact: Land is the component that increases in value, so it can be a good choice to own a property with a high land to asset ratio.  But land is not the only consideration, and not all land is the same. Desirability, demand, and location are also fundamental components of a successful property. Myth: It’s too late for me to invest Fact: Sure, it’s tougher to reap the rewards of property growth if you’re older, but it’s never too late.  Even late in life, there’s still the opportunity to grow your retirement funds and leave a legacy for your own children and grandchildren. The 7 Ways Australia’s Property Markets Are Different with Dr. Andrew Wilson  Population growth underpins our property markets Population growth is concentrated in our three big capital cities, creating a strong demand for housing. We have a sound banking system Australia’s banking system is well regulated and risk averse. Australia has a long-term undersupply of the right type of property The supply of new dwellings has not kept up with demand, thanks mostly to an increase in immigration. Debt is not a real worry Much of Australia’s debt is in the hands of borrowers who have the ability to service their loans. And much of the debt is good debt. Australian has a culture of homeownership This is different from overseas where many people expect to be tenants for life. Rental accommodation is in the hands of private investors In Australia, the majority of rental accommodation is owned by private investors. The government wants us to own property Because of Australia’s culture of homeownership, the government encourages first home buyers with certain incentives and property investors with tax breaks. Links and Resources:  Michael Yardney Metropole Property Strategists Metropole’s Strategic Property Plan – to help both beginning and experienced investors Ahmad Imam- Director of Metropole Properties Sydney Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au  See the show notes plus more at the show web page 5 Property myths that aren’t true |7 Ways Australia’s property markets are different with Dr. Andrew Wilson Some of our favourite quotes from the show:  “Not all land is created equal.” – Michael Yardney “Your life is a reflection of what you are willing to tolerate.” – Michael Yardney “If you want money in your life, you’ve got to give more value.” – Michael Yardney  PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how