ASK AVIATE – Is now the time?

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QUESTION: I don’t own property and I’m worried that if I don’t buy now I’ll never be able to afford something. But I read in the media that it’s a really bad time to buy property. When is the right time to make a move? Click on read more to see the answer

Ask Aviate

QUESTION:
I don’t own property and I’m worried that if I don’t buy now I’ll never be able to afford something. But I read in the media that it’s a really bad time to buy property. When is the right time to make a move?

ANSWER:
Some commentators have suggested that investing in property is the wrong move in the current climate.

The argument goes like this: the property “boom” has peaked, the economy is slowing, interest rates can only go up and more than enough new developments are springing up to satisfy demand.

This view – held by some self-proclaimed experts who should know better – oversimplify the issue by assuming all properties are created equal. That the investment fundamentals for a three-bedroom house in Western Sydney are the same as those for a one-bedroom apartment in West End, Brisbane.

In reality, it’s apples and oranges. Such a view fails to recognise that every property is unique. Clearly, even within the same apartment building, the value of a ground floor property adjacent to the garbage room will not perform the same as, say, the penthouse.

This fundamental heterogeneity applies for property as an investment asset class.

If the performance of two apartments in the same building is incomparable, how can we lump different suburbs together, never mind the entire “Australian property market”?

Warren Buffet famously said “Be fearful when others are greedy and greedy when others are fearful”.

If you hear doomsayers proclaiming their fear of an impending property bubble, that is the best indicator that it’s the best time to buy.

Smart investors are using the right research to find the right properties in the right geographical pockets. Their property investments are made through experts with a proven track record of analysing the many factors that determine success.

Ensure your property investment recommendation is made by a professional with genuine expertise.

You can find out more by attending “Table for Eight”, a property workshop hosted by property experts Aviate Group at 6:30pm every Thursday night in Darlinghurst. Places are limited to eight per session, so book today at aviategroup.com.au/TableForEight.

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