Newsletter Articles

Don’t say you weren’t warned!

Regular readers of this publication will have already seen a few of my recent articles wherein my general message has been along the lines of “things aren’t that bad... don’t listen to the doom-sayers in the media.” Well, let me add to my existing message by saying that I think now is the time to be seriously looking at buying property.

First home buyers seem to already be getting the message as is evidenced by the increasing number of young people that we are actively helping to put in a position to buy. Existing home owners should jump on the band wagon, too! Can you seriously think there will be a better time to buy then now, with record low interest rates (still falling) and a lull in property values?

Risk getting caught up in the media-driven negativity at your own peril! There will be aneconomic bounce back from this economic down turn and many wise people have already seen that and are buying now to maximise their gain. In the Sunday Mail (1 February 2009) Tristan Rowland from Harcourts Real Estate was quoted saying that “2011 is shaping up to be the biggest boom in Australian history, and now is the time to buy your ticket.”

Judy Goodger, arguably Brisbane’s highest profile real estate agent, said “I don’t see prices being slashed in Brisbane this year as we have witnessed in some other markets and recent interest rate cuts will continue to give buyers more confidence”.

“Out of every downturn comes opportunity and there are plenty in this market place”, saidBettina Jude of Metro First National.

Buyers who listen to over sensationalised media tend to miss out on the best buys, the real money is made in the lull, not when you are packed shoulder-to-shoulder at an open house with another potential buyer contending for the same property. Warren Buffet, American investor and the worlds richest man recently said “...be afraid when others are greedy and be greedy when others are afraid”. These are the best times to buy!

Remember back to 2001. We had experienced a 10 year period of pretty flat property returns and then the market turned. GST was introduced to reform our tax system, a $7,000 First Home Owners Grant was introduced, and before too long, the market exploded. I remember it well. Every second person you spoke to talked about how a recent property purchase was already showing good returns. Their friends then started to listen. Before we knew it, we had a boom. The smart investor bought early and made big gains whereas the cautious investor eventually buckled under the weight of the numbers and probably purchased at the peak in the market.

My opinion... it’s about to start again. Put me to the test. Save this article and send it back to me in 2 years and see how close I was. But don’t say I didn’t tell you so.