The Sydney & Melbourne markets have changed...perhaps forever?

"The Sydney & Melbourne markets have changed...perhaps forever? "
April 26th, 2016 - Phil Anderson

 

I don't want to offend anyone, but there has always been a stereotype that Sydney and Melbourne investors don't invest outside of their own cities. Melbournites and Sydney-siders are loyal, fiercely so... and for decades the mentality has been "Why would I invest outside of one of the strongest property markets in the country?". Because of this thought, we are seeing some investors risk loosing everything, while other interstate opportunities have gone begging. But are we seeing these two markets possibly change forever?

Since the emergence of the internet, those from the "Big Two" cities are realising that this way of thinking has become outdated... as the amount of information readily available at our finger tips has changed everything. Now all of Australia feels like an investors backyard, not just the city they live in.

I was talking to a group of investors at one of our private events recently, and I could see a definite shift that had occurred in their thought process. These investors were from Sydney, and as I've been visiting that market extensively in recent times, I can see the sands of the Sydney Property Market shifting quite dramatically with Sydney-siders now open to the idea of interstate investing.

These investors are now realising that there are far better (and believe it or not, in some cases less risky) opportunities out there than the ones the Sydney and Melbourne markets provide... oh, and with less painful holding costs to boot.

I'm often asked...

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And the answer is "YES", some of my members and I have been in those markets for a very long time...

The point I am making is we are seeing a flourish of not just home owners looking to move outside of these big city markets for Sea and Tree changes... but we're seeing young investors do exactly the same thing.

They are getting priced out of the markets in their own back yard, they're sick of having to cough up $150 - $350 a week after rent has been payed to meet repayments, and they no longer want to lose sleep as they watch vacancy rates rise as high as some of these absurd unit developments!

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Investors are quickly realising there are multiple property cycles out there that are begging to be taken advantage of, and I applaud them for that... but sadly we're also seeing them make a crucial error in their strategy.

As you've heard me say before, choosing the right area is only half the battle. Looking at infrastructure, vacancy rates, and holding costs will all be for nothing if you don't chose the right property type..

4050f571318e2fca4046e01a63480df0And this is where we're seeing many investors getting their fingers burnt.

Make sure you choose the "right" property type, as it could be the difference between achieving your financial goals, and sliding back behind the 8 ball..

To learn which properties I'm talking about, and for a whole lot more crucial property information, have a read through my just released State Of The Nation Report (Autumn Edition), as it'll show you the very latest Hot Spots, and NOT Spots, around Australia.
Happy investing!
Phil Anderson
Property Expert and Author

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