As a real estate agent and auctioneer I meet lots of people who are looking for their first home or an investment property. Many of them have been given advice from friends, family or ‘advisors’ on what to buy.
Unfortunately many of them make THE WRONG DECISION that costs them tens of thousands of dollars in future years.
Your most important property decision is to find a trustworthy real estate agent who can become a property advisor for life, who can tell you what properties to avoid, what areas to avoid and what areas have potential.
A current example is the oversupply in the townhouse market in many local suburbs like Carina and Carina Heights.
Developers continue to build huge numbers of two storey townhouses in developments next to each other. Suburbs are becoming saturated with a massive oversupply of these townhouses.
The effects on the market is devastating. Investors buy a new overpriced townhouse thinking that the depreciation of the property will be a great tax deduction, but as more new townhouses are built, their property drops in value and popularity.
To make matters worse, with every new townhouse that’s built, investors want tenants and will drop the rent to find a tenant – so the rental market drops as well. Investors are suddenly owners of a property with dropping value and dropping rental return – every investor’s nightmare!
This is a perfect example of investors or first home buyers needing to talk to their trusted agent to find out what they should look out for – both good and bad. A simple phone call could save you tens of thousands of dollars and a huge amount of stress.
Stay smart – buy and invest wisely.