podcast

What's stopping your property from going up in value?

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Damian Collins, What's stopping your property from going up in value?

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Supply and demand are absolutely crucial when you're buying an investment property and too many people focus on the demand side and forget about the supply. So often you find property marketers will tell you to particularly go to locations such as the Gold Coast for example. They'll say "There's great demand, lots of people moving here. It's the fastest growing city" and so on and so on. But what they forget to mention is the supply component of it and if there's lots of land available for release. And if you're buying an apartment in an area where there's lots of potential supply, for example in Melbourne at the moment. In 2014, Southland and Docklands have a lot of supply come around to the market so even if that demand's really good, supply can really inhibit price growth. So I'm very much of the opinion that when we're buying property and what we do, we look for those demand factors but if there's potentially a lot of supply it just rules it out as being a good investment area.

Listen to other instalments of The Smart Property Investment Show:
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
Episode 63: Q&A session: the SPI team answers your questions
Episode 62: Property procrastination: the importance of finding help
Episode 61: The ins and outs of strata: what buyers should consider
Episode 60: The pros of using a buyer's agent: why this investor brought someone in
Episode 59: How to invest in property as a team: two investors share their secrets
Episode 58: When do you stop investing? The SPI Show answers more listener questions
Episode 57: Wealth creation through property: trends and themes to think about in 2017
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