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How to Take Advantage of a Cooling Property Market

If you’ve kept an eye on the property market recently, you’ll notice that the market is cooling a little. Price growth has stagnated, auction clearance rates are slipping, and the average ‘days on market’ is increasing.

Here are a few ideas that will hopefully help you make accurate and profitable decisions in the coming months.

1. Do Your Research:
At times like this, you need to make sure that every asset you have is performing. Instead of taking the property developer’s advice at face value, challenge them and ask them to show you an investment analysis showing the returns, the overall cost, the projections etc. If they can’t do that, they don’t know enough about your personal needs to recommend an investment for you.

2. Buy Good Quality Assets:
Your research will show you where the best performing areas are so don’t just buy what they buy. To get the best results, you need to do an in-depth cost analysis to see if the property meets your goals – look at vacancy rates for the area, yields, total cost of ownership, tax deductions, depreciation allowances – and see what the property really costs you to own. If you don’t have the expertise to do that yourself, ask your accountant, a financial advisor or myself to show you how it all works. It’s not as simple as it looks.

3. Don’t Listen To Your Neighbour:
Invariably, the people who give you the most property advice are those that don’t own property. Before taking any recommendations from anyone, especially neighbours and best friends, ask them how many properties they own, how much money they’ve made from them and who they get their advice from.
Based on that information, you can then decide whether their advice is worthwhile or not.

In a cooling market, opportunities don’t dry up but in fact can become more abundant. So take advantage of the good times ahead for buyers and make the right choice by following some of these tips.

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