Each Week I provide an up to date report to my vendor’s with insights into not only their buyer’s feedback and price interest but also the wider market in general. As always, the following in no way constitutes financial advice and no warranty is offered as to its accuracy or validity. The reader is to make their own inquiries prior to making any decisions.
Experts recommend to buy established
An article posted by the Australian Financial Review by reporter Larry Schlesinger shows how experts suggest not just buy now instead of later but also to consider established over newly built properties to get the most out of your investment.
Jonathan Philpot, a partner at accountants HLB Mann Judd, stressed the importance of purchasing established over newly built properties:
“New property has its own issues. If you look at the disasters in property investing, it does tend to be on the new side of things,”
A well-known property investment adviser, Margaret Lomas, also pitched in that people should buy existing property before January 1 should Labor take power:
“If you have the right kind of risk profile, and the bank will lend to you, and you have done what is required to become an educated investor, then I’d be buying as much as I could before the new rules come in.”
Ms. Lomas also stresses that investors lean towards established or newly established homes:
“New property has always been a bad idea for property investors. It comes at a premium for starters, and while an owner-occupier might be happy to pay that premium for features, those same features rarely bring much additional rent return. A property a few years old has always been a better option than a brand new property,”
Nerida Cole, head of advice at wealth managers Dixon Advisory, highlights the importance of a buy and hold strategy:
“It’s important to consider what the outlook for that asset is. If it’s still a good growth prospect, like a blue-chip property or in a growing suburb, then you should hold onto it,”
To read the full article click here. Always seek independent legal and financial advice before making any property decisions.
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