Expert Advice: by Sam Saggers
So Where Should You be Investing Specifically in 2012? In Summary…
Let’s look at conditions of markets across the country, focusing on promising markets which investors should take a look at as well as those which are not performing well right now:-
· The markets which have certainly done well post GFC are Sydney and pretty much
the whole of the Melbourne market.
· The markets which did poorly just after the GFC in 2008 – places like Brisbane and Perth actually declined in value.
The below analysis is just a small part of the puzzle of picking select locations that are going to take off in the next year.
Falling Rates Offer Opportunities
I can see indicators that there are quite a number of promising opportunities as we enter 2012.
Certainly the past few months have been a little bit sluggish from a capital growth point of view across the country, but a lot of these figures tend to get skewed, especially by the high end, over the million dollar mark real estate market which is suffering more than essentially the bottom end of the market, which doesn't typically endure large variations in price.
For example this year I believe we'll see two solid city markets – Brisbane, particularly the inner city ring, and Western Sydney. When we look at the GDP per capita of world cities, we soon find out how big the mining industries of both Perth and Brisbane are. In fact, comparing them to both Melbourne, Sydney and Adelaide they are far more sizeable, or there's far more economic prosperity in both Perth and Brisbane, it just hasn't been shown yet per capita.
I think Brisbane right now is showing the best signs of being at the bottom and the best signs of potentially rising in value very rapidly over the next two years. The key for investors is selecting the most lucrative deals and strategies to match their particular financial goals and personal situations (which are vast and varied) – so they can achieve maximum capital growth in these key areas.
It is my opinion that in 2013 and through 2014 we're going to see the Perth market also do very well. We'll see the rise of Perth, but I don't believe it's going to be in the next two years. I do believe it's still an opportunity to buy over there, at more or less the bottom of the market.
Click here for Part 2 of The Hottest Markets of 2012 Report including Market Insights for Brisbane, Sydney, Melbourne, Perth and Adelaide!
Sam Saggers is CEO of Positive Real Estate and Head of the buyers agency which annually negotiates $250 million-plus in property. Sam's advice is sought-after by thousands of investors including many on BRW’s Rich 200 list. Additionally Sam is a published author and has completed over 2000 property deals in the past 15 years plus helped mentor over 2200 Australian investors to real estate success!
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
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