: This is a guest post by Sachin
Looks at property market trends and how to evaluate real market moves. Discusses the investment advantages of buying off the plan
Property market information varies from excellent, accurate news to types of information which barely deserve to be called gossip. When you’re looking at buying an investment property, the last things you need are non-information, rumors, hearsay and speculation without confirmation. It is possible to get some sense out of the property market trends, but it’s not by listening to second-hand information- It’s by research and checking your facts.
Property market analysis- Identifying real trendsThe property market is actually a financial market, in effect. Gigantic amounts of capital are involved in property, and like other financial markets, there’s a thriving industry in predicting trends, real or imaginary. The fact is that a lot of these predictions are about as useful as astrology for investors.There’s also quite a lot of self-interest involved in marketing good stories about new investment opportunities, making some of the “trends” more like advertising than real market information. The more reliable trend analyses come from sales figures and market behavior analysis targeting specific areas and types of property investment.A classic case of market trend analysis is the big Southbank development in Melbourne. This trend is one of the most significant things ever to happen to the Australian property market, and it’s setting the standards for a new type of property investment dynamic.
The Southbank properties are a very different investment proposition. In Southbank, an investor can buy a very high value investment property off the plan. This isn’t the usual pattern of property investment. It’s a much better and far more efficient, cost-based form of investment, buying top quality, brand new properties that have a natural capital gain upside. These developments are right in the heart of Melbourne, meaning there’s a built-in demand which ensures excellent returns both in terms of rentals and capital gains.
Investment methods- Defining investment value potentials
Compare Southbank results to the usual sales-based snapshots of property market trends, and you can see a big gap in the process of property market trend analysis. This approach is more than a trend, in many ways. It’s a new, extremely efficient, high-ROI property investment methodology. It’s also the exact opposite of the old property investment approach, in which land releases, new suburbs and analyses of sales in a particular market are the norms for describing property investment opportunities; not what you’d call definitive analyses for investment planning purposes.
You need to analyze the values of the method of investment. The Southbank paradigm has delivered great returns to investors. There’s no ambiguity at all about these ROI outcomes. Sales analysis is only part of the story- The investment method is as important as the sales, in this case. The Southbank investment methodology targets high return options within property markets, and that’s the real “trend”.
There’s some more good news for Australian property investors- The Southbank methodology is spreading around the country, and the effects are likely to be spectacular. New top quality investment properties can be bought straight off the plan. If you haven’t checked out this type of investment before, you should. You’ll find that the investment potentials and ROI values are exceptional. Do your research and cost your investment options, because you’ll see some very interesting numbers.
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