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014 | Should you buy during a Boom? (And are we in a Property Bubble now?!)

There’s no denying that Sydney and Melbourne are in a boom right now…But what does that mean for the everyday investor?  

Here’s the deal:  

We’re exploring WHAT you should be considering if you’re thinking of jumping into these heated markets… 

 WHY having the fundamentals of property selection is important during this time… 

And discussing the Australian Prudential Regulation Authority’s (APRA) new changes to lending policies that seriously affect pre-approvals for investors!! 

 In fact, we’re answering if you should even be investing at all during a boom – After all, how do you know the market hasn’t already peaked?  

We’ll also be sharing our strategy for dealing with booming markets! (Check out our episode on buying counter-cyclical as part of this!)   

And remember folks… 

It’s not a bubble, it’s a balloon! 🎈🎈 

You heard it here first!! Now that we’ve verbally trademarked it (Yep, that’s 100% legitimate 😉)…what do we mean?  

Well, you’ll have to tune in to find out!  

All we’re saying for now is that Sydney’s currently in a property balloon…Listen in now!  

 

Free Stuff Mentioned:  

  • Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away! 

    • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
    • This field is for validation purposes and should be left unchanged.
  • Watch Ben’s Commentary on RBA’s release
  • Should you be a Borderless Investor
  • How To Spot A Property Spruiker?
  • Renovation does not equal Riches
  • Top 10 Suburbs in Sydney in 2003 and what happened to them in 2007?

 

Here’s some of the gold we cover…

  • 2:08 – What you need to remember about the property market  
  • 2:48 – Why Sydney is in a balloon NOT a bubble!  
  • 5:10 – FREE data on Sydney’s top performing areas  
  • 6:25 – Should you buy during a boom?  
  • 7:20 – Why you need to have your property selection fundamentals right!  
  • 8:30 – Our strategy for our clients (& why we’re out of the Sydney market right now!)  
  • 10:30 – The “Common Sense” point of view  
  • 11:13 – A safe strategy for booming markets  
  • 11:53 – What is Compression Risk?  
  • 12:55 – What properties we’re buying in a boom vs. the typical properties we buy  
  • 13:57 – THESE are the times you should buy in!  
  • 15:00 – Why you should consider your Timeframe  
  • 16:58 – Does the Commonwealth Games impact property value?  
  • 18:55 – Are you up to date on APRA’s changes to lender policies?  
  • 20:25 – Our key message!  

 

009 | Buying Counter Cyclical

Buying in a heated market is kinda like jumping off a cliff because everyone else is jumping… 

…many investors start buying any old investor stock (Call it a classic case of the FOMO), but the problem is, how do you know that a heated market hasn’t already reached its peak before you even jump in?  

The answer is: Sometimes to get ahead, you’ve got to take the road (or cliff) less travelled! (We might be going overboard with this analogy)  

In this case, it’s using a counter-cyclical strategy.  

Today we’ll be exploring what this is, the benefits it can bring, and how becoming a borderless investor could be best for you!  

But remember folks: Each state has its own cycle, and it’s not always easy to tell WHERE the market currently is!  

To help you determine this, we’re sharing a fantastic resource called CoreLogic Monthly Housing & Economic Chart Pack. This pack allows you to see how each state’s property market has performed over the past 30 years! (Just click on the image to download the report now!) 

Episode 009 - Buying Counter Cyclical - Core logic RP Data

 

 

 

 

 

The message today folks is it’s all about market timing and avoiding making rash decisions. To learn how to navigate both, listen in now! 

 

Free Stuff Mentioned:  

Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away.  


  • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
  • This field is for validation purposes and should be left unchanged.

 

Here’s some of the gold we cover…

  • 1:00 – We’ve got something to celebrate… 
  • 2:30 – Sydney folks, beware the bubble! 
  • 3:40 – Why we’re lucky in the property market  
  • 4:05 – The psychology of the buyer  
  • 5:10 – The “Rebound” Property  
  • 5:59 – The biggest market cycle Sydney has seen  
  • 7:00 – Ben’s experience with this market cycle  
  • 8:05 – A quick look at Australia’s market cycles  
  • 9:00 – Don’t be caught up in FOMO, instead become a _____ _____! 
  • 9:45 – Interest rates, value and heated markets  
  • 10:39 – Were seeing THIS for the first time in Australia’s history!  
  • 11:00 – The PROBLEM with buying in a heated market 
  • 11:50 – What is buying counter-cyclical? (Don’t end up like this client!)  
  • 13:20 – The role of Government and Australian Prudential Regulation Authority (APRA) in an unregulated heated market  
  • 15:30 – THIS helped us through the Global Financial Crisis  
  • 16:00 – 1 property, 2 different investors, 2 very different results… 
  • 17:30 – What markets you should be looking at investing in!  
  • 18:07 – Why you should want ____ ____ to control the markets 
  • 19:09 – In summary, we love you Sydney BUT… 
  • 20:30 – Check out the Chart Pack!  

 

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