Is the property slowdown a good thing?
Apart from forcing practicing agents to turn to other means of income (helloo Uber), the property slowdown has actually allowed prices to soften so that first time buyer or first time investors can actually get a good bargain if they play their cards right. Look at it this way, if you buy with contingency measures set in place for the worse case scenario, you are actually in a better position than someone who buys in a good market, and who is unprepared for a downturn.
That brings us back to the situation that we are in today. Rather than waiting for a single turning point and for things to return to the ’normal’ of the previous years, maybe it’s time to face facts, to welcome the new ‘normal’ and embrace the opportunities that 2016 will bring.
It’s all about the Long Term
Gone are the days of property prices rising continuously and at such a fast rate that flipping properties becomes the norm. In fact, the Seller Stamp Duty (SSD) was introduced to stop this and with it still in force, property owners have to be doubly sure that they will have the holding power to weather dips in property prices and rental demand.
The reality is that prices are slowly dipping and might dip further with the impending financial slowdown, so the rental potential of the investment in landed residential property you buy is extremely important. In a good market, the rental yield or the passive income that you collect each month can be a determinant of a good investment property. However, in a bad market, getting clients just so that you can cover the monthly mortgage should be your focus.