Takeaways for 2018 Property Market

Made no secrets that I like Steve McKnight.... here's his latest take on the property market

(extract... Volcano)

1. The possibility of financial loss is increasing, and that means investment risk is increasing too. Now is not the time for wild, or super speculative, property investing.
   
   
2. Debt is getting harder to get. In my case, even though it is a little more expensive than the headline interest rates being advertised, I’m happy to hang on to an existing debt facility that was written under more favourable conditions than what might be offered today.
   
   
3. Spring is coming, and with it, the peak time to sell. If supply increases without demand picking up, expect prices to fall.
   
   
4. A little price slippage isn’t panic stations. Property prices would have to fall by more than 10 to 15% off their peaks to get me nervous, and we are a long way away from that just yet. Still, if a price fall of that magnitude would cause financial heartburn for you, then maybe you should consider cutting your losses so you can live to fight another day. Don’t assume you will get today’s price tomorrow, in a soft or down market.
   
   
5. Better and better deals are coming on the market, but vendors are still hoping for more or less top dollar. Presently it is development and renovation opportunities that have become more prolific, but often these are still being marketed at inflated prices by vendors. Be patient.

 

This is a great one! As I've been selling down a couple over the last 8 months, I've been transferring the loans onto other fully owned properties (security substitute).
Better to be fully offset than pay off loans then having to reborrow on the next purchase.

Steve is a genius btw.

 

So he's saying sell now. Or ride it down by 15 percent

 

Dont think its panic stations, but I guess mitigate risk as property sliding, no one knows how much it will drop

 

Yes, very clever

 

My Takeaways for 2018 Property Market

Some amazing deals in OZ are just around the corner for those cashed up with low lvrs. Especially add value deals.

Exciting times ahead.

 

He seems to indicate 15 percent possibly

 

Tip 3 is an absolute beauty!
Market is correcting and people are waiting for Spring in the hope the warm weather will drive back up prices. I’m expecting a lot more stock to hit the market in a few months and if demand isn’t there then people will start to do silly things.

Me personally I’m looking to Pick a few horses in September/October and just wait out to see what sits in the market until late December. Coming into Christmas and stock becoming stale means opportune buying time.
I still maintain the market (Melbourne is my focus) has a good 10-15% correction in it but as long as these rates remain low and with Big4s now dropping rates as low as mid tiers then I don’t imagine the bottom is as far away as I first expected.

I don’t forecast much if Any organic growth for a few years though so unless your strategy is manufactured growth I would personally remain on the sidelines.

Time to find me a lemon to start making some lemonade.

 

Can you expand more location-wise and property type?

 

Sydney - older semi market inner east. Add value. Some unit markets close to East.

I'm sure there are other deals around and more so in 2019.


Also some.good buys in Brisbane middle ring for medium term hold. Add value .

 

Autumn or winter might actually be a better time to sell, and buy:
Why putting your house on the market in spring could damage your chances of a sale

 

When I saw the title of your thread the 'Takeaways' made me think of food, so I can add another Takeaway is that kebab shops are no longer frowned upon in 2018 & modern versions are popping up in posher suburbs of Melbourne driven probably by the rise of HSPs.