Current property market calls for ‘tactical aggression’
The growth trends currently unfolding on the property market are closely reminiscent of those experienced in the early 2000s and call for “tactical aggression” from first-time entrants, a property expert has said.
In a recent episode of the Investor Insights show, Right Property Group’s Steve Waters compared current market trends with those last witnessed 20 years ago, describing both scenarios as “bonkers”.
“For me, this has a very similar vibe to the year 2000, 2001, 2002 and 2003, when the market was just bonkers.
“That market ran for a little bit and maybe there were some different components, but it was one of undersupply. Now overlay that with technology and the saturation and availability of information and today we are in a very similar yet unique position,” Mr Waters explained.
He pointed out, however, that buyers today are in a slight advantage given their unprecedented access to data, which enables the development of educated decisions.
But therein lie the challenges – the democratisation of information has given birth to a little too much information.
The thing to remember, however, is that “everyone is quite unique”, Mr Waters stressed.
“It’s not a one size fits all. It’s not this type of property in this area suits and fits everybody’s long-term objectives and personal circumstances in this point in time,” he explained.
According to Mr Waters, when building an individual strategy, several points need to be defined prior to selecting the right property in the right area.
“There is no chance to create a strategy until we know what someone’s finance capacities are, what the product is, what the rates are, personal circumstances,” Mr Waters added.
Entering the rising market
As for advice for new investors looking to get their start in this market, Mr Waters’ business partner, Victor Kumar, said: “Don’t jump in for the sake of jumping in.”
“For some people, now is not the right time to buy. If your job is not secure, perhaps you need to reengineer what you’re trying to do.
“Other times, you need to make sure you’re not being held back by fear of overpaying a property,” Mr Kumar said.
Adding to Mr Kumar’s thoughts, Mr Waters urged “tactical aggression”.
“That means well-thought-out with a methodical approach. If you’re lingering on the sidelines, trying to determine value around a particular area, property, street, tomorrow it’s going to be worth more.
“That’s the market that we’re in. Data is out of the window now, it’s all ground proof,” Mr Waters concluded.
For more investment insights, click here.
More from this writer:
-
Major bank says inflationary pressures on the way up
-
Housing markets brace for ‘tricky’ territory, but a rapid snapback could be on the cards
-
Australia’s build boom could end in 2022 as lack of migrants bites
-
Australia’s preliminary auction clearance rate just fell to a new low
-
Property market told to brace for more frequent natural disasters
-
Westpac warns of sharp economic contraction
-
Pioneering buyer’s agent reveals his secrets to building a fruitful property career