As promised in our last episode (Ep 14 : Should we buy in a boom and are we in a property bubble?) this time on The Property Couch, Bryce Holdaway and Ben Kingsley talk about a new topic suggested by Aaron, one of our valued listeners. He has provided us with a case study and we think it’s a great chance to discuss about real life property investing stories in Australia. Here’s a summary of the question:
“Why does some apartments that seem to tick all the boxes just don’t appreciate in price overtime? This block at Brunswick is close to the public transport, schools, cafes and lifestyle but based on the comparable sales, the apartments have only achieved very little if any price gain since 2010. Your podcast have been saying “Location First, Property Next”, but I’m confused with this property. Why is this place so cheap? If it’s because of the property itself, does it mean the location is not always the biggest factor? And finally, should investors seriously consider properties like this or stay clear?”
Start listening to the podcast to find out why this block of apartments is not appreciating in value and why they are not investment grade properties but more like investment stocks. If you are interested in investing in apartments, check out Episode 7 as well where we talked about investing in One Bedroom and Studio Apartments.
Resources mentioned in this podcast:
- Top 10 Suburbs in Sydney in 2003 and what happened to them in 2007?
- ABC News 24 – Property Bubble in Sydney and Melbourne?
Warning: This podcast is longer than usual but we promise you that it is jam packed with good quality and independent advice and point of view. However, remember that you should always get professional property advice before making any decisions.
Thanks again for all of our listeners out there. If you like this podcast: “Real Life Property Investing in Australia : Case Study”, don’t forget to rate us at our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have any questions or ideas, feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/