Ahhh, the million $$$ question! Read on, answers below (the heading isn't click bait!)...
If you're anything like me, the more you think about this the more confused you become. Sure, you might buy in your local area and get lucky. You might also follow the general consensus and buy in a "boom" town and suffer massive losses which are hard to ever recover from.
If you really want to succeed you need to do the research and understand the various property markets around Australia. That takes a massive amount of time, energy and passion.
Mortgage Choice understand this and have partnered with a number of industry leading investment property research companies.
But back to the research. If you want to know how these companies do it one of our partners, Aviate Group, are offering a FREE online info session on Tuesday 7th March. You can sit in from wherever you are in the world. Hear about research methodology and what to look for in an investment property.
When? Tuesday 7th March 2017
Time? 6:30pm - 8:30pm
Who? Aviate Group
RSVP by emailing email@example.com with your name, contact phone and email address and we'll sort it out for you.
Last Monday & Tuesday I took a self-funded trek over to Perth (City, not suburbs) to meet with some boutique developers and check out their work. Incredible stuff, beautiful products. Now I know what a lot of you are thinking - Perth's economy is bust! The mining boom is over! The property market is going backwards! But did you know that the mining industry comes in at only No. 7 in the list of top employers? The top spot is held by the Health Industry. The Education Industry is also gaining. Perth is not only about the mining industry, although that is definitely what pushed their property prices up originally.
Twelve months ago, this appeared in an article in the West Australian, by Economics Editor, Shane Wright:
‘Perth is likely to be one of the world’s economic hot-spots over the next 10 years and beyond — as long as it survives the financial “wrenching” caused by the end of the mining boom. An Oxford Economics report shows Perth will do more to boost global GDP than either Sydney or Melbourne over the next 14 years.’
‘…Perth could be one of the 50 biggest urban contributors to growth, adding the best part of $241 billion to global economic activity. It would be in the same group of major economic players as New York, Shanghai, Beijing, Los Angeles, London and Shenzhen.’
One of the drivers of such growth for the West Australian economy is the expected increase in global population of 410 million people by 2030. WA, as a mineral rich state, is uniquely positioned to take advantage of the growing demands of a burgeoning world population.
The article underscores our conviction that the decline in the Perth property market and the general WA economy has an end date. It can't and won't last forever. The state is responsible for almost half Australia’s economic output and is therefore a crucial component in the long term economic prospects for Australia. The question is not if Perth will recover, but when.
Speaking of recovery, iron ore prices have for the first time in years, “knocked on the door” of $100 per tonne, following the recent and rapid fall that signalled the end of the construction phase of the mining boom.
Of course Perth may not be your cup of tea - I'm not pushing the Perth barrow by any means (there are definitely areas you wouldn't go anywhere near), however this very basic recap of the research is really interesting. Would you want to buy at the bottom of a property cycle in a area which is tipped by independent economists to be one of the worlds economic hotspots over the next 10 years? Proper research will uncover these hidden gems, lead you to a well educated decision which in turn will give you a greater chance of success.
If you'd like to discuss this please feel free to email me HERE or call Mortgage Choice in Gymea on 02 95254544