Not many of my ‘Best Bits’ articles are reposting my own comments from newspapers but this one does.
As you read, it comes with a warning, Be careful how you listen to your experts.
Since the release of my book earlier this year, “How to jump into Property Investing – without being eaten by Sharks”, I have had numerous interviews and comments requested by various media so I am grateful for the opportunity.
Usually, they can only take a small section of what you say and then will put together an article they feel will be good for readership.
The below article was in Brisbane’s Courier Mail on Saturday just gone.
When I say be careful HOW you listen to experts I mean, take the information and ensure you understand the meaning or interpretation.
EG, the below headline of “Asking prices down 20%”. While this is correct, I don’t agree with the suggested action at all!
They are talking about inner Brisbane mostly and that is due to the oversupply problem of units in the inner city and the flow on to units a little further out. It is NOT reflective of house prices generally in Brisbane, they are well on the rise now, especially in some areas. You just have to compare vacancy rates of the inner city of over 4% compared to houses in the burbs of 1%. Kirk Simpson from Lucra Real Estate told me last week about the problems he has competing with the discount kings of the rental market of city apartments where they are giving free rent for 3 months just to get a tenant, of course, the asking prices are coming down!
Elsewhere we see some historically conservative forecasters suggesting Brisbane property growth of 13% over the next 3 years. They called Sydney growth forecast at around 15% from memory at the start of the Sydney boom and it rose approx 80% so to say they are conservative is an understatement.
Extra caution should be taken from the last sentence about yields being up in some mining areas and how it could be attractive to investors. DANGER Will Robinson, DANGER! (to quote the robot from Lost in Space). This could be taken as encouragement for investors and I would LOVE to hear your opinion on that. I think you know mine!
Mining town investment has crippled many an investor and it’s the yield during a mining boom phase that gets investors drunk on short-term income. The good news is that Qld Mining is back on the rise in certain areas according to friends of mine who supply to big mining operations so my suggestion for those people who currently have property in a mining area is if have the opportunity to sell at a fair price, do it! Then you can buy back into a reliable long-term growth market like … let me see… BRISBANE!
There is no doubt that this article is right in pointing a very positive period of growth for Brisbane but ‘caveat emptor’, (buyer beware), talk to a property strategist first so you know what to buy, where and why.
Have a good weekend,
HOME hunters have a window of opportunity to nab a bargain in some of Brisbane’s best suburbs before an influx of interstate migrants swallow up stock and push prices up, experts say.