News

The Question - Where to invest in the current market

Tue, 3 Jan 2012

As a property professional, the most asked question is “where should I invest in the current market”.

There are a lot of factors that come into play when trying to answer this age-old question. These include, but are not limited to:

1.    Are you after capital growth or a solid rental return?
2.    Are you in the market for short, medium or long term? (We always recommend long term)
3.    Are you just looking for an investment or something that you can move into in the future?
4.    Are you prepared to value-add to the property by doing a full renovation or undertaking modest repairs or possibly looking to undertake a development in the future?

Our property advisers would ask all these questions. We would also send the client to obtain expert advice with regard to their tax position, the ability to be able to afford the investment and the structure/entity that the property should be held in to fully maximise their taxable position.

Once all of those questions have been answered, it is only then that we can formulate a plan of where the right investment is for that particular individual.

Putting all of that aside, we decided to ask this question to our team of licensed valuers who are working in the field every day and are able to get a feel for how the market is performing – so where do they see the opportunity and good buying at the present time?

We have seen that the media and raw statistics show the median house price for Perth is falling. This is not across the board however and some individual suburbs are performing better than others. It is our opinion that a number of suburbs are showing modest growth in the face of a falling market. This is somewhat supported by median house prices when analysed on an individual suburb basis.

For example:
     Glendalough    6.9% growth for the year to date to September 2011
     Lathlain            3.2% growth for the year to date to September 2011
     Perth               The annual change in Perth median was negative 4.0%
                            and negative 6.3% for the quarter

So, this is what our expert panel of valuers have come up with.

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