A quote from Warren Buffet, one of the world’s richest men and renowned investor, sums up the buyer’s market perfectly:

“Be wary when others are greedy

and greedy when others are wary”

Looking back over the last few decades, cycles in Australia have generally lasted about seven to nine years and property growth has peaked – in other words we had property booms – in the following years: 1981; 1987; 1994; 2003.

Our last boom in 2003 was stirred by the First Home Owners Grant. When is the next boom?  2010? Don’t wait for the media to inform you the next boom is here otherwise you will have missed the first spike – a 25% profit! Those who jump on board earlier earn the best rewards.

Over the last few months there has been a flurry of activity, mainly led by first home owners in the $350,000 - $500,000 price range. In fact there are more buyers in the market than we have seen in a long, long time.  

Despite our turbulent financial times, falling interest rates and an increasing shortage of supply of well located properties in our capital cities, coupled with increasing demand from first home buyers and investors, has ensured that property prices have held firm. Rents keep rising and investors are turning to the security of property investment opposed to more volatile options. The cliché “safe as houses” is once again ringing true.   

Not all properties will increase in value equally – some will outperform the averages. Our changing demographics – the way we live and where we want to live – will mean a certain type of property will have lasting appeal and be in continuous strong demand by owner occupiers and tenants.

Is property investment just for high income earners or the wealthy? Statistically in Australia, over 70% of property investors are on incomes between $35,000 and $40,000 per annum. Over 90% of all millionaires become so through investment in real estate.

Why do some property investments work better than others and what can I do to make sure my property investments do perform? In essence, property investment performance means minimising your 'out of pocket' expenses and maximising your potential capital growth. Some of the reasons property investments fail to perform as expected can include:

- The loan taken out was structured incorrectly

- "High maintenance" houses were purchased

- Investors missed out on claiming the maximum tax deductions

- Buying with emotion, instead of analysing facts

- Low capital growth potential

- Low rents and high vacancy periods

These mistakes can easily be avoided. Before investing, contact a financial advisor for free advice on which price range, which area and type of property are most suitable for you and your situation.

For a free personal consultation please contact Louise Carr on 8110 9888 or 0433 363 500.

Alternatively, to reserve your seat at our Free Investment Seminar, email  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

This information should be used as a general guide only and professional advice should be sought before making investment decisions. 

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