Blog Highlights – Mid 2021
Melbourne property demand has overwhelmed the supply since the beginning of 2021, and demand shows no signs of decline even after the expiring of the HomeBuilder package and stamp duty discounts. Over the last six (6) months we have produced nearly 100 blogs/market insights keeping buyers up to date with useful information and trends.
In case you missed it, here we summarise five (5) of our best blog highlights we published during the first half of 2021. Click the heading links to read the article. If you want to learn more, please feel free to visit our Market insights page for more educational topics.
Location remains important when buying property
When buying a property considering the importance of its location has never been so important. Buying in a good location, you’ll have the flexibility in the future to modify or renovate the property. However, buying a property in an inferior location can’t obviously be easily picked up and moved to a better area.
That’s why you should consider the location carefully. Here are some of the most important things to look for.
Where do I buy my first investment property?
Where do I buy my first investment property? The property market is a massive landscape. It can be overwhelming to think, where do I start? There is more assessable information available than ever before, but what you read, can be far from factual. In fact, a lot of online content may be based on opinion. Having more information available can make your first step to buying an investment property more confusing and overwhelming than it should be.
Investing in property is not a hobby
If you plan to be a successful property investor, you’ll need to quickly create a mindset that investing in property is not a hobby. Establishing a property portfolio should be treated similarly to a business. If you are new to investing this market insight will highlight the important aspects to investing better.
Owning an investment property can be very rewarding by offering a passive income through rent, while it grows in value over time. If you have money to invest or want an alternative source of income to support your living expenses now or into retirement, a buy-hold strategy can be very profitable. In order to buy and hold well, you need to approach this strategy as carrying on a long-term business.
Advice from friends and family
Family and friends offering advice will come from a good place but it doesn’t mean it’s the best advice. You’ll see that your uncle is a successful businessman but that doesn’t mean he knows how to invest in the property nor does he understand your objectives and risk tolerance. Your uncle may have a financial buffer that allows him to make riskier decisions, but your personal situation may be quite different. Saving for a property deposit can be the hardest contribution to buying an investment property. It may have taken up to 7 years to place yourself into a situation to invest. It is for that reason, not everyone has the same objectives and risk tolerance.
How to avoid home buyer’s remorse
No doubt everyone has experienced it in one way or another. Even the more experienced property investors feel it on some purchases. It can even come to you when buying a car, a new tennis racquet, a dress or paying for some accommodation.
There are different levels of buyer’s remorse. Purchasing a $300 tennis racquet would be seen as a lower scaled level of buyer’s remorse as it’s likely you can comfortably cover the cost without too much strain on your livelihood. If you plan to purchase an investment property valued at $650,000, this would be viewed to be on the higher scaled level of buyer’s remorse. The fact you need to borrow a large sum of money requires a large commitment to repay it, the strain on your livelihood would be much higher. It requires your attention each month and would reduce your cash flow.
You will be incredibly satisfied and proud of your property investment, but at first, you may encounter second thoughts and stress a little on the risks rather than the rewards.
If you enjoyed our blog highlights, please feel free to take a look at our Market Insights section to learn other great property tips.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
August 2021
