Property market to slump by 5%

Assuming this is true for a minute (and it very well could be), it highlights the importance of diversification in a portfolio to ensure you always have an asset growing at any one time. Those who are most successful and able to continually build a portfolio are those who are always able to leverage off something, somewhere.

 

100% agree with this...as Sydney and Inner Melbourne hit the mat...other areas like Brisbane, Outer Melbourne, Geelong, Hobart, and Adelaide will take up the slack.

These areas are still very affordable.....and with finance tightening people will look at these areas as their borrowing is capped and people realise that they need to get into other growth markets...

 

Definitely.

Also, once one has established a reasonable portfolio and believes good growth will continue, it could be prudent to start looking at high yield properties with minimal maintenance as a target for future payoff by the initial purchases to generate the income in future years.

I believe a good property (wealth creation) strategy has stages and the target properties within the overall game plan must change as the time line progresses to achieve what is usually a debt free portfolio with a passive income. The stage the credit cycle is approaching would also suggest that adding that sort of property to your portfolio in coming years would be a good idea as the traditionally higher growth/lower yielding properties will be harder to fund for the next little while. I personally will be looking to purchase a few of this type myself where opportunities arise.

 

I agree with this prediction, only adding that Gold Coast was left out of the list to buy in. Indeed it's pretty much already happening.

http://www.realestate.com.au/news/g...wing-faster-than-those-in-brisbane-and-sydney