THERE is a lot of talk that location is usually considered to be the ultimate success criterion of real estate purchase, according to Bellarine Property managing director Christian Bartley.<\/p>\n
\u201cApart from traditionally successful locations the obvious things to watch out for in cities and big towns are areas about to be gentrified, or areas where amenities are undergoing upgrading, making them more sought after or more accessible as dormitory suburbs.\u201d<\/p>\n
He said that the bottom line as far as location was concerned in real estate was to be sure the area was growing.<\/p>\n
\u201cHowever, there is another not so often cited method of making sure you have the Midas touch.<\/p>\n
\u201cThe surest way to see strong capital growth and to maximise resale, no matter what the current state of the economy, is to buy property priced at or within 15 per cent of the median (not average) price for the area of your choice.<\/p>\n
\u201cThe total outlay should include any renovations or extensions.\u201d<\/p>\n
According to Mr Bartley, that doesn\u2019t mean gains can\u2019t be made by buying in a higher price bracket.<\/p>\n
\u201cWe\u2019re talking about playing it safe in order to maximise capital gain and minimise risk.<\/p>\n
\u201cProperties more than 15 per cent above the median for any given area are particularly affected when the market slows.<\/p>\n
\u201cAfter all, competition is essential for high prices and oversupply and under demand occur more quickly above the median price.<\/p>\n
\u201cEven in good times, the highest price categories attract the smallest percentage of the buyer pool.<\/p>\n
\u201cIf you have more to spend than the median and you are afraid of over-capitalising, choose an area where the median is higher, or buy two properties \u2013 one for investment and one to live in.\u201d<\/p>\n
He said that even when the market started to gather momentum, it would gather first in the median price category.<\/p>\n
\u201cBy very definition, the median price is where the turnover is.<\/p>\n
\u201cConsult your accountant or a reputable real estate agent if you don\u2019t know how to work out the median for the area in which you wish to buy.\u201d<\/p>\n
For more information, phone Mr Bartley on 0410 695 325, email christian@bellarineproperty.com.au or head to bellarineproperty.com.au.<\/p>\n","protected":false},"excerpt":{"rendered":"
THERE is a lot of talk that location is usually considered to be the ultimate success criterion of real estate purchase, according to Bellarine Property managing director Christian Bartley. \u201cApart from traditionally successful locations the obvious things to watch out for in cities and big towns are areas about to be gentrified, or areas where […]<\/p>\n