The Smart Money Is Buying Now
Well there’s no doubt about it, the market has been in a bit of a “lull” over the past 9 months – mainly due to a number of factors including some uncertainty in Government with major upheavals at the top, which both parties have been guilty of, and of course the Royal Banking Commission which just left everyone confused, astounded and none the wiser.
So, because everyone has been too scared to commit to anything for whatever reason, or because people who thought they could borrow money easily suddenly couldn’t because their shopping trolley was too full, prices of property have now fallen, making property cheaper now than it was 11 years ago – a complete anomaly for Western Australia.
So what now? Do we just sit on our hands? Well, that’s what most people will do because they will want to see “how things turn out” – but the truth is – once it’s ‘turned out’ it’ll be too late. We should ACT on the FACT and the fact is that property is cheaper now than for the past decade – and so the “smart money” will go out now and buy up as much property as they can – especially as their negative gearing option might get snatched away from them in the coming months.
See more of 118 Aberdare Road, Shenton Park
The “smart money” always does the opposite to what everyone else does, and it knows how to buy at the right price – it doesn’t sit and wait until the price goes up and then kick itself that it didn’t act sooner. We’ve already noticed a slight upturn in the rental market, so take this as your “cue” to move – this is generally a good indicator that prices are about to rise so take your cue now and act, or ignore it and be the sheep that follows everybody else which will cost you more money but will probably make you feel nice and safe and warm.
There are a lot of apartments right now that will pretty much pay for themselves, and if the rental market continues to rise you will probably find yourself positively geared – not a bad place to be, especially if you throw that back into the mortgage and let other people buy your future assets, which will keep you comfortable in your retirement!
Buying things that are irreplaceable is also a smart move – like for instance character homes. They are special, they are limited, they can no longer be made and so, like a vintage car, they will always be highly sought after – a great place to put your investment money in my opinion.
So, there you have it – buy now, buy smart but don’t outdo yourself on the bargaining side – prices have already fallen, so don’t push your luck and make ridiculous offers – you may be a seller in the future, and the tables may turn so be fair. Happy hunting! (that’s house hunting – definitely not the other!)
Source: “The Smart Money Is Buying Now”, The Post – 13 April 2019.