Over the course of a week or even the same day reading property investing commentary and expert advice you will find that some of the advice is positive and that it’s a good time to invest in property but in the very next article you might read that the market is in a bubble and things are predicted to go backwards and it’s not the right time to invest.
So The Million Dollar Question Is Who Do You Listen To When It Comes To Property Investing?
Well, firstly I know who I am not going to listen to. Have you ever been at a family gathering and someone mentions to uncle George that you are looking to buy your first investment property? And now for the next hour, uncle George shares with you his boundless understanding and intimate knowledge of the local property marketplace and carefully explains to you all the reasons why you shouldn’t be investing in property now. The big problem here is Uncle George has never bought or sold or invested in property in his life, however he is totally committed and passionate about explaining exactly what he thinks you should be doing and what he believes is the right move for you.
Then there are the well-researched journalists and bloggers out there who have access to expert opinion and the latest data. Some are reporting that it’s a good time to invest. Some are reporting it’s a good time to wait. Others are reporting it’s a good time to cash out. Once again, just like uncle George whilst you may pick up some good points to consider, you need to question how much property investing these reporters have done and or are currently doing in the marketplace and what is their motivation in writing the article?
Now that’s not to say that you won’t pick up some incredibly valuable advice here. What I am saying is when it comes to property investing and selecting a property investing plan that is right for you to set up your financial future, you need to be 100 per cent aware of the advice that is coming in to your world that can influence your decision-making process and be sure to filter every piece of advice so you are empowered to be making the very best decision for yourself and your unique situation.
Understanding That Your Advisors Have Their Own Sometimes Hidden Self-Interest.
Understanding your advisers’ often hidden self-interest is a great way to empower yourself during the property investing decision-making process. For example, a local real estate agent is generally positive when talking about their market because their main income stream is generally through selling property, which requires a transaction and a positive level of confidence in the marketplace for buyers and investors to move forward in. So real estate agents are more likely, even unconsciously, to always be putting a positive spin on things.
Closer to home, your partner or significant other will also play a large role in your decision-making process whether you’re aware of it or not. Ideally the best results are always when you both are on the same property investing page, however let’s say your partner values security very highly and they have never invested in property before, so this will mean they are naturally more concerned about doing something that they consider to be risky.
Now I’m not saying that if you have this kind of partner that you should go out and try and find more risk-taking partner here, no definitely not! What I’m saying is to always be aware of all your property advisors’ hidden drivers and be sure to be making the right decisions based on your and your family’s best interests, your financial capacity to invest in property and by selecting the property investing vehicle that’s right for you.
And if your partner is very concerned about any property investing risks, it’s about taking the time and sitting down with them and working through your plans together. Looking at all the possible scenarios (positive and negative) and your contingency plans so your partner has a greater understanding of what you’re looking to achieve and also by doing it this way, you can demonstrate that you have thought about how you can cover all of the risks moving forward.
NSW Premier Announces New Housing Affordability Package But What Does This Mean For Investors?
First home buyers are the big winners in the recent New South Wales housing affordability package released by Premier Gladys Berejiklian. Two of the several new changes include local investors will now need to pay stamp duty on off-the-plan purchases at the time of purchase and foreign investors will be hit with increases on stamp duty and land tax.
China Buys 25 Per Cent Of All New Homes In New South Wales.
Chinese investors are continuing to look favourably on the two gateway cities of Melbourne and Sydney when it comes to investing in new property, according to recent research uncovered by Credit Suisse analysts. They estimated that Chinese buyers snapped up 25 per cent of all new homes in NSW and 16 per cent in Victoria in 2015-16. Compared to Chinese housing prices, Sydney and Melbourne are still considered cheap safe alternatives by Chinese investors.
Is Your Investment Property’s Backyard Hiding A 12 Per Cent Return?
In New South Wales, it used to be that a Granny Flat needed to house a close family member, however the government has relaxed the guidelines due to the housing affordability crisis pressure, which is good news for investors because the humble Granny Flat is making a strong comeback delivering estimated returns of around 12 per cent.
Key questions to ask about your property investing advisor.
Some of the things to consider when assessing a property adviser would be: What is their property investing experience? How well do they understand the property market you are looking to invest in? How well do they understand exactly what it is you are looking to achieve? What is their motivation and are they giving you advice that is 100 per cent best for you or are they unconsciously giving you advice that helps them in some way, which they may not even realise they’re doing?
The final property investing decision is always up to you so please be aware of all the factors at play here and be sure to surround yourself with advisors who are 100 per cent working for you to help you achieve your property investing goals.
All the best on your investing journey.
Yours always.
Harry Charalambous
CEO – Plan Assist Property Team
