Thursday, November 22, 2007

Now is not the time to buy, but if you must...

Many savvy people have become 'Bubble Sitters', those who sold near the top and are now renting, waiting for the market to bottom before jumping back in. Many are settling in for a long wait.

For those who simply want to be property owners I can tell you, now is not the time to buy! Some people in the U.S. find themselves in the position where they, for what ever reason, need to buy. If you must buy property, here is some common sense advice from Down-Under.
As a former real estate investor myself I can tell you it really is this simple.
Vern

By Neil Jenman
Take the 'property doubling every seven years' statistic, the one that's supposedly chiselled in stone. It's garbage. To prove it all you need is a ten dollar calculator.

Take the city of Sydney – the Mecca of property investing. (In Australia)
In 1890, the average Sydney home price was $1,446 (£723). If property really does double every seven years then, in 2009, the average Sydney home will be worth $189,530,112.00. (There must be one helluva boom coming in the next 14 months).


Most inexperienced investors do not realise that investing in property – the right way – is relatively simple. The respected financial expert Noel Whittaker says something like this when it comes to smart property investing, "All you have to do is buy a well located property from a seller who urgently needs to sell and is prepared to accept a discount for a quick sale."

I have a very close friend of Italian descent. His name, of course, is Tony. He has the best definition I have ever heard for investing the right way in property.
Tony says, "I never invest in a property unless I know there are plenty of people who would line-up to buy it from me for more than I paid for it as soon as I have bought it."
In other words, Tony only buys high-demand property. He never buys from a Selling Machine company.


I have seen plenty of people make plenty of money by doing what people like my friend Tony do – they stay away from Selling Machines, they learn about the property market by doing their own time-consuming research (which, when you work it out is probably worth hundreds of dollars an hour to them) and then they buy a good property in a good area at a good price.

1 Comments:

Blogger Raj said...

Nice article, be sure your particular off plan property can be sold on prior to completion without penalty, as this is not always the case on every development and some will not publicize this fact to property investors. You’ll be better off with your options left open so it’s advisable to avoid developments where selling on is not possible. Be aware that some developers say you can sell before completion but include a clause in the contract stating you may sell on only when they have sold all the other apartments within the development.

Friday, November 30, 2007  

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