For many years in the late 1990’s through to the mid 2000’s, the hot topic at dinner parties was the property market.
Stories of investors making huge profits from property (usually by negative gearing and relying on capital growth) was commonplace. Many felt like they were missing out if they didn’t have their own piece of the market.
And then property in most markets flattened, dropped and is now likely to plateau for years, leaving the past decade of extreme price rises in the annals of history.
However, even with this slowdown in the market, astute property investors are ready to pounce.
Independent property investor *Brett McCallum believes there are many sellers in the market at the moment, who are highly motivated due to the fact they “got in way over their heads”.
“There are some out there who have seen property as a way to make a quick dollar or a get rich quick scheme – of which there is no such thing,” he said.
“A good property investor is in it for the long haul.”
Mr McCallum said many investors make the mistake of listening to what the mainstream media are reporting, rather than doing their homework on the value of the property.
“Good investors will only pay what the property is worth in any market,” he said.
Mr McCallum said to be successful you need to buy a property below its intrinsic value, in an area that has always exhibited strong long term capital growth and add value to your property.
Mr McCallum always looks for positively geared properties to add to his portfolio, and has found companies such as www.saltairrealty.com.au and www.nrascentral.com.au beneficial when looking for positively geared properties to add to his portfolio.
“I always only invest in property with positive yields or the option to update the property and increase the yield to become positive,” he said.
“I am huge fan of NRAS (National Rental Assistance Scheme) property at the moment as this gives you the best of both worlds.
“A negative geared property with positive cash flow that is subsidised by the Government.” * Contact Brett at brett@bsmc.com.au
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