The Home Buyer and Investor Show always has some great industry leaders up on stage keeping us abreast of the latest figures and strategies, and this year was no exception. For those of you who missed out, here are three of the most interesting and insightful take-aways from the weekend.
“It’s more difficult to get a loan if you’re pregnant” – Effie Zahos
An interesting point from Effie Zahos of Money Magazine and one to note if you’re looking to start a family and get on the property ladder at the same time. Because of the expenses involved with giving birth and raising a child, the bank may downgrade the ability to service your loan. This could mean a lower level of finance or a decline on the loan altogether.
Effie also pointed out that you can search for great comparison rates between lenders at canstar.com.au or ratecity.com.au.
“Forget about trying to time the market” – Ben Kingsley
Ben Kingsley from Empower Wealth Advisory in Melbourne made some great points to debunk the myths surrounding property price growth. Ben stated that it’s not about trying to time the market when buying property. Instead you should be asking yourself “When can I afford to get in and how long can I afford to stay in for?”
Ben also made a great point for buyers to consider the value of older properties. “What appeals today as “new” will one day be old” and if you’ve sacrificed some of the fundamentals such as location or size then you may be left holding a dud investment in years to come.
“NSW is the only state where the number of investor loans actually increased in the last year” – Andrew Wilson
Some great figures and insights from economist Andrew Wilson, showing us that investor loans had indeed increased last year in NSW. What does this tell us? Investor activity is heating up and the Sydney market is on the move – investor activity being boosted by increasing rental yields, low interest rates and a more competitive lending environment.
Bonus comment – “Be cautious of free property services”
I know I only promised three comments for this article but I thought I would throw in one of my own as well.
For those of you who did attend the show, you probably noticed many companies promoting development stock both here and around Australia. Many of these companies were providing strategies for investors that included finding the property through multiple sources, all at no cost to the buyer.
I have nothing against new or off-the-plan development myself. I believe it can act as a cornerstone of solid investment strategy and successful portfolio. Make no mistake though, everyone gets paid for the services they provide. If a company claims to provide an extensive service at no charge, question where their income is coming from to maintain their business model.
Only a Buyers Agent can provide you with truly independent representation in the property market. In this instance the fee is paid upfront by the buyer. It is a very clear and open transaction so the agent can then work exclusively for you, the buyer.
If you’re ever involved in a transaction where you’re not paying for the service, question how the service provider is getting paid and whether your interests are their first priority.