Home' API Magazine : January 2014 Contents 10
In the hotseat
API JANUARY 2014
JANUARY 2014 API
EPS Property Search buyers’ agent Patrick Bright explains why
2014 should be the year of the investor.
What’s in store for 2014 and what’s your advice for investors
My advice for investors is not to get caught up in short-term
thinking when it comes to property investing. Don’t chase the next
so-called ‘hotspot’. If you do want to buy in a location that’s been
written up or talked about then make sure you research the area in
detail so that you’re confident the location will give you the return
you need to meet your financial goals.
Do you believe in New Year’s Eve resolutions when it comes to
property and if so, why?
I believe that today is a good day to make a plan for your future if
you don’t have one. Don’t wait until next year or even tomorrow.
Milestones such as New Year’s or the end of the financial year
have a place as they’re good times for investors to review the
performance of their current investments and then have a hard
look at their plans and strategies for the year ahead.
What’s your tip?
Treat each investment property as a small business to make sure
you’re getting the best possible return on your investment.
Is it too late to get into the Sydney market? Have investors
missed the boat?
Unless you’re a developer, investing in property isn’t a short-term
game and should be viewed as a medium to long-term investment
strategy, designed to provide you with the future financial security
you’ll need to fund your retirement. As such, you shouldn’t delay
your investment plans another day. Get moving, start investing
or you’ll still be asking if it’s the right time to buy an investment
property in 10 years!
Is it better to look in other areas now, i.e . Brisbane or Adelaide, or
do you think Sydney will outperform other markets?
While I’m not a forecaster I can pass on what the majority of
interstate buyers have been saying to me over the past 12 months,
which is that Sydney seems to be in a 10 to 15 per cent off sale
when compared to the other major capitals. This market sentiment
suggests there’s still significant growth to be enjoyed in the
Sydney market, which the majority of property forecasters are in
What’s the best type of investment property to look for?
I believe you should look for one that will produce a good return on
investment while you plan to own it and still be highly desirable
when you’re ready to sell it.
You don’t want to be stuck owning an underperforming
investment property or have to sell it cheap to offload it when
it’s time for you to cash in. It really is worth doing the necessary
planning and research to secure a great property and avoid ending
up in this situation.
Some investors might hold property in areas that aren’t
performing. Is it better to cut your losses and buy something that
will perform, or lock in a lower interest rate and wait?
Ask yourself this question: ‘If you had known what you know today,
then would you still buy the same property that you currently own?’
If the answer is ‘no’ then sell it.
When you’re holding a dud property you need to remember that
it’s not just the underperformance that’s costing you money, it’s
also the opportunity cost of not being in something better.
How can investors make sure they’re not paying too much in the
Undertake comprehensive, timely research in order to determine
an accurate current market value on properties of interest. If you
don’t have the time or dedication to do this properly then do what
the smart money does and hire an experienced buyers’ agent.
Why is pre-approved finance so important?
Having finance pre-approval is essential. It allows you to transact
promptly which is vital, especially in markets that are on the move.
It also saves you from looking at properties that are out of your
price range, thereby saving you from wasting time.
Where are most of your investment properties?
Most of my investment properties are located in Sydney. I own
a mixed property portfolio that includes houses, commercial real
estate as well as one and two-bedroom apartments.
Why do you invest in these areas?
I believe that it’s best to invest in the inner ring of metropolitan
cities in good proximity to the CBD where there will always be a
strong demand for rental properties. I’ve also purchased well over
$500 million worth of property for clients as a buyers’ agent in
Sydney over the last 14 years and prior to that I was a selling agent
in Sydney. I have built up extensive knowledge of the best suburbs
and parts of those suburbs to invest in, and equally as important,
which parts to avoid.
It’s important to note, however, that location is only half the
trick of investing wisely. You also need to buy the right type and
style of property for the location if you want to achieve an above
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