January 2017 - Picking Pocket Rocket Properties for 2017
By Rich Harvey, Managing Director propertybuyer
Happy New Year and welcome to 2017! I hope you enjoyed a wonderful break away over the Christmas period. With the start of a new year comes many thoughts and feelings. While resolutions come and go, setting specific and smart goals for health, family, career, finance and property can transform your life over time. Don’t try everything in one go – break down the goals to manageable chunks and get help where you need it most. This month we look at how to be super selective in choosing the right property – getting picky pays dividends. Also check out our first seminar, Boom Suburbs for 2017 on Wednesday, Feb 15.
This January update includes:
1. Picking Pocket Rocket Properties for 2017
2. Seminar Wed 15th Feb - Discover the Boom Suburbs for 2017
1. Picking Pocket Rocket Properties for 2017
As the property market matures/changes in various parts of Australia, buyers must exercise caution in the methods they use to select their next property purchase. Low interest rates have driven extensive buyer demand from both home buyers and investors, but this low rate environment won’t last forever. Banks may move rates independently of the RBA, but official rates look set to be stable for the majority of 2017.
After a boom, buyers are naturally more wary of how the market is set to perform and perhaps hold back in fear of a correction. However, after studying economics for many years and practicing real estate for over 20 years, I have seen many property cycles and learned that you can make money in any cycle if you know how to ride the wave and pick the right properties.
Location drives value
Before you jump into selecting an individual property, research the market dynamics of an area/ suburb. The same type of house can be worth a million more in another suburb depending on where it is located and its proximity to amenities. People highly value proximity to shops, schools, transport, entertainment, cafes, restaurants, sporting facilities, parks, bushland, beaches, water, etc. Find out how many properties sell each year in the suburb, why people move in or move out, the demographics and trends, the percentage of owner occupiers vs investors, median price changes and auction clearance rates and most importantly any likely increase in property supply forthcoming. Don’t buy a McMansion with 5 bedrooms just because it’s on big land and looks good but is stuck out in the sticks and a 40 minute drive to shops. Instead seek out areas with excellent established infrastructure, high demand and attractive amenities.
Don’t catch paralysis of analysis
Some people really are just too clever for their own good and think they can assess everything themselves. I used to have this disease myself analysing things like car insurance renewals down to three decimal places. But it can be a waste of time over-analysing the obvious things. There is no doubt you must complete sufficient due diligence buying a property – it is the most expensive asset you will buy – but when the research is done and the boxes ticked, it’s time to hold your nerve and move forward. One of the common factors we find in testimonials from clients is they appreciate the “confidence” we give them in making a property decision. We act as an independent advisor and sounding board to make sure you get things right.
Early bird gets the worm
Searching for property is an arduous process when you have so many other demands on your time, but persistence pays when researching and shortlisting. You need to have a systematic approach to searching the market and be able to quickly assess which properties are worth inspecting and which ones are duds. We have an extensive agent database to get access to many off-market properties before they are publically listed.
I cover this multiple times in my seminars but if you want a copy of my Top 20 Investment Criteria you can download it from the link below:
So what makes a pocket rocket suburb? Essentially it is one that is primed for strong future growth that avoids the ups and downs of the cycle and is in constant demand. It could have gentrification potential, or if it is already established, have limited scope for mass redevelopment (this means it avoids any potential over-supply of units). It is typically a suburb that has lots of renovations going on and some focal points around cafes and shops. It’s a suburb where the demographics are driving demand – lots of families or cashed up professionals. Or it can be a “hipster” suburb with a cool vibe, plenty of eateries, bars, entertainment precincts, art galleries and parks.
If you are looking to buy your next home or investment property and want to get the inside running on the pocket rocket suburbs for future growth please call my friendly team of professional buyers agents on 1300 655 615 or complete your property wishlist today and start a conversation today.
Rich Harvey is founder and Managing Director of www.propertybuyer.com.au, Australia's most awarded Buyers' Advocates. Propertybuyer helps property investors and home buyers search and negotiate the right property at the right price, everytime. Visit www.propertybuyer.com.au or call 1300 655 615.
2. SEMINAR - Discover the Boom Suburbs of 2017 & Beyond
Wednesday 15th July, 7-9pm (from 6.30pm registration) SMC Centre, Sydney
You are warmly invited to our first seminar for 2017.
Early in the New Year is the ideal time to get your property goals on track. After stellar growth in Sydney and Melbourne where are the next opportunities for property investors and home buyers?
We are pleased to announce that John Lindeman will demonstrate his proven system for successful property investment. You will discover where to buy, what to buy, how much to pay and when to sell to get the best possible results.
You will also gain excellent ideas about how to plan your next property purchase and look at innovative ways of growing your property portfolio. Rich Harvey, Buyers Agent and CEO of propertybuyer.com.au will outline his latest strategies.
Topics covered at this special event include:
- Property market outlook for 2017
- Where are the next boom suburbs?
- How to retire in 15 years – creating a growth focus
- Where not buy – areas to avoid at all costs
- Designing a personalised property strategy
- Tips for picking property winners
Financing your next investment – how to win over the banks
Telephone enquiries: 02 9975 3311
You will be given the opportunity to obtain John’s exclusive property research program – at a reduced price - which provides a proven research system for early and comfortable retirement.