ONE of the major dilemmas for property investors is where and what to buy.<\/p>\n
\u201cIt always surprises advisers how many investors are emotional about their purchases,\u201d Bellarine Property managing director Christian Bartley said.<\/p>\n
\u201cMany people see their investment properties as an extension of their own home and indulge in the same feelings of pride of ownership. They turn down a property with terrific investment potential and strong rental demand just because they themselves couldn\u2019t live in it.\u201d<\/p>\n
According to Mr Bartley, many investors lose out by making heart rather than head decisions about property purchases.<\/p>\n
\u201cThe strongest demand for both resale and rental is usually, by very definition, around the median price in any marketplace or location.<\/p>\n
\u201cFurthermore, the luxury markets are usually the first to be hit by any economic downturn. Much of the luxury rental accommodation is leased by corporations who, in poorer economic times, can no longer justify the cost of accommodating employees in high rent areas.<\/p>\n
\u201cAnd high income earners are unlikely to commit to large mortgages or rents in a climate of economic uncertainty with the possibility that salaries or jobs could be under revision.\u201d<\/p>\n
Mr Bartley said median priced properties \u2013 those in what you could call the large mass of the market \u2013 were not as badly affected and usually gave their owners the best long-term return.<\/p>\n
\u201cIf they lose some demand from their usual occupiers because young people move back home or families scale down to smaller or cheaper accommodation they pick up tenants or purchasers who can no longer afford the luxury markets.<\/p>\n
\u201cInvestors should forget the question \u2018Could I live in it?\u2019 and instead concentrate on analysing objective investment criteria.\u201d<\/p>\n
For more information, phone Christian Bartley on 0410 695 325, email christian@bellarineproperty.com.au or head to bellarineproperty.com.au.<\/p>\n","protected":false},"excerpt":{"rendered":"
ONE of the major dilemmas for property investors is where and what to buy. \u201cIt always surprises advisers how many investors are emotional about their purchases,\u201d Bellarine Property managing director Christian Bartley said. \u201cMany people see their investment properties as an extension of their own home and indulge in the same feelings of pride of […]<\/p>\n