Editor's Note: April 2014
Buying... and selling
A three-bedroom, one-bathroom house in Stafford, a suburb nine kilometres north of the Brisbane CBD, was listed for sale in February with an asking price of $439,500. It needed work but was capable of bringing in $400 a week rent as it was. Sixty-two people went through the house on its debut open inspection and six offers were received for the property. The agent was confident it would sell for more than $450,000.
A good number of properties in inner Brisbane suburbs are going under contract quickly and multiple offers are becoming increasingly common.
Further west in Toowoomba, one agent reports that houses are also selling fast due to pent up demand from investors. In this regional town housing is affordable and it’s easy to find a neutrally geared or positive cash flow investment.
The much-maligned Gold Coast market is on the move too. Houses in sought-after locations such as Broadbeach Waters are selling within the first few weeks of listing.
Meanwhile over in Sydney, the buying frenzy continues. Even a noisy inner-city unit in Mosman, just footsteps from busy Military Road and asking a ridiculously high price, attracted multiple offers within days of being listed.
Head away from the major centres of the eastern seaboard and there are property markets that aren’t doing much of anything. The aphorism ‘A rising tide lifts all boats’ is certainly not one that can be applied to the overall market. At any given time you’ll be able to find areas that are performing above average and areas which are flat or in decline.
The disparity between different markets around the country serves as a valuable reminder of that one factor we should all take into consideration before buying a property, in addition to local economic drivers of course. And that is, ‘saleability’.
Even in a down market, will the property you’re investing in be easy to on-sell? And can you be certain of making a profit?
To ensure the answer to both questions is yes, it’s important to buy well. And if you don’t buy well, it’s important to be able to add value to the property in some way.
For real-life examples of how this is possible, we introduce you to six ordinary investors who’ve made more than the average annual net salary in less than a year from real estate. Their motivational stories begin on page 38.
Also in this issue, we launch a new section called Open For Inspection, which aims to educate readers on what to look for and what to avoid when buying an investment property. You’ll find this on page 32.
And if you’ve ever wondered what actually happens on settlement day while you’re waiting for that phone call from your agent or solicitor to let you know it’s all gone well, we reveal the process on page 56. Enjoy!