Educator reveals the Achilles’ heels of property investors

“‘Oh, I want to borrow but the banks are saying no.’ That's code for, ‘I’m in a financial mess,’” Ms Collier-Kogtevs said to Smart Property Investment.

“When I read someone’s credit file, I can tell by that credit file whether they’re a good risk or not. So, they’re just realising that they can’t borrow, they can’t buy, but they want to.”

Meanwhile, Ms Collier-Kogtevs said the investors who already have a grasp on their finances are having difficulties with detailing a strategy.

“The question is … more around their strategy; ‘Do I go capital growth now while the market’s cooling off, or do I go for cash flow?’” she said.

“So, it’s about strategically maneuvering their strategy so they can purchase more in this time rather than wait and see what happens.”

How can I get ahead?

Ms Collier-Kogtevs advocates, as published previously, for investors to take action sooner rather than later, especially in the current market.

“And this isn’t going to last forever, so take the advantage now,” she said.

She also mentioned that existing investors in the current market should be taking advantage of a previously published rental boom.

“It’s going to turn on its head in some time and it’ll be tenants dictating the market, and that’s the cycle of it,” she said.

“We’re in that cycle where now it’s come back to the buyers; only 12 months ago it was vendors dictating terms.

“Now it’s changed and we’ve come off that boom, so for years, we’ve had vendors enjoying the market increasing. Now that it’s cooled off, it’s now time for buyers to be enjoying the benefits of buying in this market. It all works in cycles, and this is just another cycle.”