The latest performance data shows home values remaining strong, lifting by 0.6 per cent nationwide in April. This matches the gains recorded in the previous two months and extends the upswing for the 15th consecutive month, despite high interest rates and worsening affordability.
Perth is now the best performing capital city, while Melbourne is the only area that decreased in price – even Darwin performed better. The dip in Melbourne is no doubt due to the recent round of extra taxation and tightening of tenancy legislation, causing property owners to select other areas as better buying opportunities.
Looking ahead, the nation’s chronic housing supply shortage is expected to continue to shield prices from any sharp downturn if interest rates were to rise further or stay higher for an extended period.
While it’s fine to review the performance stats at national level, don’t fall into the trap of using this data to make the crucial decision of where and what property to buy.
There’s one big mistake most people make when it comes to deciding where to buy property.
That mistake is . . .
Using suburb level sales information or ‘hot spot’ reports to decide which locations are the best to buy into.
When you do things like:
- Try to jump onto the ‘latest’ hot spot
- Use sales performance data printed in the media to choose your property location
- Buy into a suburb because a ‘property expert’ said it’s going to increase in value
. . . You’re actually doing a lot of damage, even if you don’t realize it.
Here’s why it’s such a big problem:
You need property location choices to be tailored to your personal requirements.
Let’s set aside the fact that sales performance tables are at least two months out of date (because purchases have to be settled before they can be counted, and settlement takes place 6-8 weeks after an offer is accepted). Also, sales performance is just history – not a predictor of where property prices are heading.
The main problem is that you can’t obtain useful decision making information from suburb level sales prices. Each suburb has multiple markets – for example three bedroom houses versus two bedroom units – and to find the best location you need to gather information about how your particular property type will perform .
Looking for the DIY way to buy?
Check out the new BUYER SUCCESS PROGRAM 👉
Designed to save you time, help you identify problem properties, and increase your ability to negotiate and purchase your ideal property.
. .
One of the smartest things you can do to avoid this problem is ensure you know how each property type will perform in each location. Taking this approach will mean you won’t waste time digging into the detail of properties and locations that will hold you back financially, rather than going directly to the property and locations that will enhance your financial position.
But how do you obtain that kind of insight? Because you don’t have hours and hours to spend on technical research for every property that might be within your range.
That’s where I come in.
25 years in buying all types of property around Australia has taught me how to quickly identify high performing property just by assessing relevant property performance characteristics. This means I can search from a broader pool of options, find the best performing property matching your criteria and provide you with a clear forecast for what each property will deliver so you can then buy the best of the very best in the field.
If you’re ready to learn the best property strategy to achieve your specific target (along with the step by step process to building a profitable portfolio) click this link to sign up for a free Lifetime Income Strategy call.
Can’t wait to talk with you!
About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
Follow us on facebook.com/ThePropertyFrontline for regular updates, or book in for a strategy session to discuss your property questions.
Disclaimer – This information is of a general nature only and does not constitute professional advice.  We strongly recommend you seek your own professional advice in relation to your particular circumstances.