Below is an extract from an article in which Oliver J. Stier (OH Property Group’s Director) discusses how to find good value in today’s property market.
The article was published in April 2011 edition of Your Investment Property magazine.
Australia’s property markets have undergone a transformation in recent months. No longer are large numbers of buyers clamouring to compete at auctions, forcing property prices higher and higher. Now, the picture in many suburbs is of sparsely populated auctions, passed-in properties and discounted sale prices.
Does this mean that the great growth period of property is over? Far from it! After all, the Australian property market is far from a homogenous beast: markets will vary from city to city, from suburb to suburb and street to street. There will always be somewhere that’s on the up.
Moreover, long-term capital grow this set to continue: while the rapid rise of interest rates and withdrawal of federal stimuli have dented the economy recently – not to mention the economic impact of the floods at the beginning of the year – the long-term economic fundamentals are strong and are likelyto remain so.
What does that mean for investors? It means buying opportunities. As many buyers shy away from the market because of the short-term economic uncertainty, the canny investor can pickup quality properties at an excellent price. These could be in suburbs which might seem fraught with risk today but that are likely to see capital growth over the coming years.
But how can you identify these suburbs – and more importantly, how can you find the diamonds in the rough within these areas?
About Oliver Stier
Oliver J. Stier is the Director of OH Property Group, a leading Sydney buyers agency. He studied Quantitative Economics and Finance at Cambridge University (UK), University of Toronto (Canada) and Princeton University (USA). In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation.