Somewhere Over The Rainbow… Apparently – There Is A Property For You!
It’s official, the property season is back in full swing, and in case you missed it, a recent article published by Stephen Nicholls, Property Editor at The Daily Telegraph, saw Sydney home buyers who will be hitting the streets of Sydney as they hunt down that golden ticket, classified into tribes – labelled creatively by Buyers Agent, Lauren Goudy.
So which tribe do you belong to and how will you fare according to Ms Goudy?
RAINBOW TRIBE – CAUTION TO DAYDREAMERS
These people “believe in the pot of gold at the end of the rainbow” — buying a house is their ticket to riches. Ms Goudy fears this tribe will be the most vulnerable this year, in a quieter market.
OLD SCHOOLERS – GETTING A FOOT IN THE DOOR EARLY IS A GOOD IDEA
They save hard for a deposit and, perhaps with the help of mum and dad, buy a small property to start them off.
“For example in the eastern suburbs of Sydney,” she said.
“They’ll buy perhaps a one-bedroom apartment and use it as a stepping stone.”
RENTVESTERS – A COMMON EMERGING THEME OVER THE LAST FEW YEARS
They buy something cheap elsewhere as an investment and then rent a home in their preferred area.
ROLLING STONERS – SLOW AND STEADY WINS THE RACE
Use the “stepping stone” approach to move up the property market, buying bigger and better each time.
FLIPPERS – YOUR IN THE DANGER ZONE
Buy older properties then quickly renovate and sell them, hopefully for a profit — often inspired by television shows. This tribe is in big trouble for 2018.
“Over the past six months of 2017 they have been badly burnt,” she said.
Many bought something before the market started to turn in August — and then had to sell in quickly in November when the buyers disappeared.
QUANTITY LORDS – WATCH OUT FOR THE BANKS!
Those who own three or more properties, at least some of them often outside Sydney as they look to build a property portfolio. Again, Ms Goudy fears for this tribe in 2018 because the banks are tightening the rules for investors.
HOT SPOTTERS – IT’S RISKY BUSINESS
Believe they have a “crystal ball” ability to find the next property hotspot. Ms Goudy warns this tribe will need to be more cautious as this form of investment will be more high risk than in the past.
SIT-A-LATERS – HARD WORK PAYS OFF IN THE END
This tribe are the lucky ones, they are now paying down the last of their mortgages and will only be active in 2018 if they want to downsize to free up some equity to enjoy their retirement.
FREE LOANERS – DON’T RUB IT IN YOU LUCKY THINGS
The tribe everyone wants to belong to — they have paid their home off and are mortgage-free. With the rises in property, they can relax this year and spend their money whatever their heart desires.
BUBBLEGUMS – BURSTING AT THE SEAMS
Have been holding out from buying anything because they believe the property bubble will burst.
“This tribe lost a lot of members in the past six months as prices have become more palatable to them,” Ms Goudy said.
Ms. Goudy explains that it’s much safer to be risk-averse in this type of climate, where significant changes to market conditions can be observed.
First Home Buyers in particular should avoid buying something in areas that have a high concentration of new developments where return on investment might not turn out to be what they had imagined.
So how did you fare?