Talk about weird Trev

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It’s a fascinating time to be in property, that’s for sure.

This week I had a family member, non investor, sell a home for 15% more than they paid just a few months ago and saw a property sell for 45% less than its 2007 purchase price.

So as a trader or investor the big secret to figure out is where is the profit and where is the carnage.  Or at least that’s what we think don’t we.

It is such a common question I hear: “Where is the best area to invest?”

So let’s remind ourselves, again , that there is no best area to invest.  Of course there are areas that have differing rates of capital growth and some areas consistently out perform others so that is one factor to consider.  However often those areas also have a higher floor in terms of discount so buying there purely on growth stats is a misnomer.

As always we need to look at the numbers to decide where the best areas might be.

For example if our primary need is cashflow then a property in a low capital growth area paying you a hundred dollars a week is going to “outperform” a high capital growth property with no income.

But the point really about all this is that 2 neighbouring properties in the same street can be bought for widely varying discounts and supply different yields, so there is no such thing as a best area, there is only ever a best next deal for you!

Stay Inspired and Stay Safe ~ Dean Letfus