- Off-The Plan apartments are good investments : The REALITY: So what if you save 3% or 4% on stamp duty, you could be buying a dud property that, after 2 years of waiting for it to be built, is not worth what you paid, and does not appreciate. Off-The Plan apartments are buying something that does not exist, and are the most dangerous property purchase you can make.
- All property goes up : The REALITY: No it doesn’t. Some should have never been built, some should never have been built in its location, some are shoddy and some vendors have overpaid. We have been offered plenty of property that has not appreciated, for years, whereas as capital gain is always a factor when we buy for clients.
- Buy in hotspot suburbs : The REALITY: Property values in Melbourne suburbs go through popular phases sometimes due to generational change and sometimes due to infrastructure changes. By the time you have read about a suburb’s appreciation, it is usually too late to buy well.
- Never buy at auction : The REALITY: Melbourne is Australia’s auction capital and, in many suburbs, to avoid auction sales eliminates most property for sale. Of course, auctions are designed to benefit the vendors but a skilled bidder/ buyer can do well with auction buying. At Strategic Buyers Agents, we buy about half our property each year at auction.
- Only buy the investment property you would live in yourself : The REALITY: This is a classic misunderstanding that I have heard many many times. If you think this is a good idea, call me and I will explain.
- Buyers Agents costs you money : The REALITY: Sure a Buyers Agent will change you a professional fee but a fully qualified and experienced one will just levy a Commencement Fee and be confident enough in their ability to rely on a Success Fee, which you only pay if a property is purchased. They will buy you a better property, or buy it in a shorter time, or at a lower price.….or all three. Many clients save their whole Success Fee in a lower property cost.
