Article - 9 reasons not to buy an investment property

9 reasons why you shouldn’t buy an investment property

Michael is a director of Metropole Property Strategists. Here he writes an article, funnily enough, on some reasons why investment property might not be good for some people.

Good points? Anyone like to add or take away any points?

 

He's predictions suck big time, one of the worst and he is hopeless

So if he says dont buy one, it means you'll do better if you bought one

 

The date on the article is 20 August 2019.

I always thought MY was ahead of his time .

 

There are a lot more reasons why property investing sucks: tenants, low returns, rates, land tax, maintenance... the list goes on.

The article is right though. Buying a property to pay less tax is a bad idea etc.

 

I'd agree on all of them except the last one , re timing the market .

For me timing the market is essential and what I spend most of my time trying to do .

Cliff

 

To be fair most people's predictions around property suck. The issue is he flat out lies to pretend that they don't. The first thing I read from him was this:

Six key lessons from the recent property downturn

Where he says "the end of 2017 when it was obvious property prices would materially decrease." So if it was obvious at the end of 2017 that property prices would decrease what was he predicting for 2018? Growth of 4-10% for Sydney and Melbourne:

8 Property Market Trends for 2018

• The Sydney property market has run out of steam, but won’t crash like some are suggesting. Instead it is likely to grow between +4% and 6%
• Melbourne houses, townhouses and villa units are likely to be the best performing market – +6% to 10%

Just another liar pretending he's got a crystal ball.

 

he also said dont buy in sydney in 2012
his hotspot list, 7 out 8 fell/plateaued in the proceeding 5 years whilst other areas boomed

the list goes on

he is not most people, he is a "claimed' property expert,he should have a far better idea than a 5 yr old shooting darts at a map

 

Yeah but once you realise nobody's got any idea 1-3 year time scale you realise the tag "property expert" is laughable. There are some signs like credit growth that can help over 3-6 months (one reason prices aren't likely to shoot up in the next 6 months). Then there are long-term measures like price to household disposable income that should revert towards some sort of mean (was under 2 in the early 80s which suggested houses were cheap and over 5 in 2017 which suggested houses were expensive). But predicting when the long-term changes are going to happen is anyone's guess. Giving city by city 12 and 24-month predictions is just picking numbers out of thin air.

 

nice! ahead of time and still cant get it right

 

If he can’t get the date right , I wouldn’t take too much notice of his predictions .

 

Number 1 is obviously the best and I would say is the reason 95% of people “invest” in property.
Quite sad really...

 

Number 1, should say "because Michael Yardney says to BUY"

 

He makes some good points. This article is to intimidate his readers so that they will be more likely to use his buying service.

 

If I'd listened to him, (although I don't think he was spruiking when I started) I would have never bought any properties.

His point number 8 "You don't have enough money".......

Well, we didn't have enough money. We bought what we could afford, when we could afford it. We bought cheap & often nasty, turning lemons into lemonade. We retired off of rental income.....but what would we know, hey?

 

I borrowed my first deposit off a mate and bought my next IP 50/50 with a friend. I also buy run down properties and renovate them to make them nice for tenants. 5 renoes later I'm doing ok. I've never had enough money.

 

Any experienced investor would ignore the article as there is no meaningful content. Its general and meant to lead a newbie reader to think they need property services.

 

I have been investing for the last 40+ years. Still don’t have enough money .

Have been married for 38+ years of those 40.

Is there a connection?

 

I asked my wife. She said "I don't know you decide"..

 

I am not game to do that ...

 

You are a wise man!