With the market going from strength to strength, many people look at ‘opportunities’ in less desirable and non-research approved markets.
More than ever, clients have been mentioning areas such as Mudgee, Wagga Wagga and even more regional areas. FOMO (fear of missing out) is beginning to kick in, and people are looking at any opportunity to enter the market. Don’t get me wrong, I totally understand serviceability and loan approval is a major factor with these decisions, but a wrong investment can set you back years and actually affect any future opportunities that might arise. I always encourage investment and am a little on the aggressive side of my property decisions, but I also understand the risks. I am having discussions with clients who do not understand the risks, nor are they looking at their long-term goal. They are actually acting on the hype of the current market place with media coverage being a strong driver and the strongest I have seen in 20 years of property.
I can’t stress enough how the attitude of ‘I just have to buy something’ can be detrimental to not only your short-term finances but your long-term goals too. We know that markets are cyclical, and some are at higher risks than others. Property investment is a long-term strategy and should be looked at as a business; property investment can make you wealthy but you can’t just buy anything. You have to follow the simple rule of buying good property in good locations at a fair market price.
When looking at your investment, please keep in mind the MACRO fundamentals of property investing- economics and employment, population and demographics, supply and demand & infrastructure spending. These are the fundamentals of price growth and the increased likelihood of vacancy protection.
I am the Property Acquisitions Manager here at Blue Wealth and I have been monitoring the market closely over the past 12 months (during the pandemic and the most recent booming market around the country). The worrying thing is the price of FOMO in the areas that people shouldn’t be investing in. The Research Team and I have found some incredible opportunities in the right markets, that aren’t part of this recent property boom and will deliver results long-term.
Don’t let FOMO dictate your choices – Don’t Buy for the Sake of Buying.
I wish you the best in your investment decisions – Be Clever.