4 Property Investment Myths Jul 12, 2021 | Blog While everyone loves talking about property in Australia, the reality is that few people are experts. Here are some of the most common property investment myths that you might hear. Blue-Chip is Best One of the main things you might hear when you talking about property is that blue-chip is best. What this means, in most cases, is buying into the top suburbs as close as possible to water or the city. While this is good advice in that blue-chip suburbs have performed well over a long period of time in terms of capital appreciation, the main thing to consider is that you have to be able to afford to buy into such an area. IF you’re in a high-paid job, then purchasing a negatively geared, high-priced property might be something that is good advice. However, if you’re constrained by borrowing or equity, then it’s not always the most helpful property advice. Interestingly, while many experts will tell you to buy only in cities in blue-chip locations, over the past 20 years, there have been numerous examples of semi-regional markets that have performed strongly and come in at lower prices with far higher rental yields. One Property Market If you read the mainstream media, you would think that Australia has one large property market, and you have to simply sit back and take what the market gives you. In reality, there are tens of thousands of smaller property markets across the country, and they all differ. We can clearly see different markets at the state level, suburban level and even street level. The clearest example of this might be a suburb that has a ‘good’ end and a ‘bad’ end. We even see streets that have very different prospects as one side of the road might be zoned differently to the other. You need a lot of Money While it’s true that you do need some money to get started in property, cash isn’t always the most valuable commodity when it comes to buying property. These days, the ability to borrow money has become a lot more legislated than it used to be, and you will need to prove your ability to service a loan. If you have a steady job or form of income, then you can also take advantage of several different types of loans and even Government incentives that could allow you to buy a property with as little as a 5% deposit. Property Always Goes Up While property in Australia has had a rich history of performing very well, there are periods when prices go sideways or even fall. The most obvious example of this would be Perth and Darwin, which both saw huge capital growth during the mining boom, only for prices to retrace and stagnate for the next five years. Why YFA? Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority. We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through us best mortgage broker Sydney. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success. What makes us stand out from others is the utmost trust from our clients who have trusted us. We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. Our mortgage brokers in Sydney is always there to assist you. We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Contact Rohit Khatak our Mortgage Broker in Balmain, NSW try to the best of our abilities to be a sane, and trusted entity in the sector of Wealth Management via providing services in Finance & Insurance. Credit Rep Number – 418883 | ABN – 8119516623 Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.