Why The Next Property HOT SPOT Doesn't Exist In My World
Investors often come to me with what I refer to as the million dollar question.
Where do I buy in Brisbane?
Great question. Let me just take a sec, refer to my crystal ball and I’ll be right back with the next hot spot pin pointed for 20% growth in the following year.
How I wish I had that crystal ball.
Anyone know where I can get my hands on one?!
The truth of the matter is, no one REALLY knows what’s going to happen when it comes to the property market.
Oh the "experts" will make their predictions, the agents will tell you the market is ALWAYS on the rise and then there’s the Buyer’s Agents who will either sell you into some house and land package developer’s stock (if they’re in bed with developers) or the independent ones like yours truly will give it to you straight up like this…
Here’s what I said to the last client who asked me the million dollar question.
Truth be told Mr and Mrs Buyer, but I really DON’T KNOW what will happen to the market.
What I DO know is this.
1. You obviously have a WANT to buy property in Brisbane or you wouldn’t have called me and we wouldn’t be having this conversation.
2. When investing in property, the number one consideration amongst MOST investors is capital growth potential. In other words, you want to know the property you are investing your hard earned cash into WILL grow in value over time.
3. We know that things like population, demographics, infrastructure, supply/demand, employment, market perception, lifestyle attributes, scarcity, value add potential, yield expectations and uniqueness of a property are all factors that DRIVE and contribute to capital growth.
4. We can also learn how an area has performed over the LONG TERM by reviewing its growth statistics from pre-existing data. In other words, we can see how a particular suburb has grown in the past and make assumptions on its future potential based on this past PROVEN growth pattern.
5. Different investors need tailored property investment strategies depending on their life stage, overall goals, comfort levels in terms of risk and personal financial situation. This means, the right investment for YOU, could vary to the next investor, so not all advice is ONE SIZE FITS ALL.
5. Remember that the property industry is littered with kick backs, incentives and schemes aimed to lure investors into properties that MAY NOT perform as well as others. This means you need to be CAREFUL who you get your advice from because not all “experts” have your best interests at heart and not all professionals are completely independent and unbiased when it comes to their advice.
As an independent Buyer’s Agent and Auction Strategist, it is super important I know my stuff when it comes to stats, new developments and what’s going on in general in and around Brisbane and how this might affect the property market, but at the same time, I’m REALISTIC when it comes to what I tell my investors.
You certainly won’t hear me blabbing about potential hot spots, guaranteeing exact percentages of capital growth or claiming to know where the next bargain can be found.
After all, I strongly believe that property is a LONG TERM investment so if you’re in it for the short haul to make a quick buck, I’m not interested.
Been there, done that, bought the I GOT BURNT t-shirt.
So to recap my little rant above, no one REALLY knows what the property market will do.
Yes, we can make predictions and assumptions based on the data and the information we have available to us now, but ultimately, investors must understand that investing in property (like any investment) carries a level of risk.
It is my job as a Buyer's Agent to minimise this risk where possible so that your portfolio can perform in the way in which you hoped and withstand the rises and falls in the market, because yes, these rises and falls WILL happen, I can almost guarantee that!