The Hot, and the not so hot, (or the watch-outs), in Property in 2018. Don’t be scared off, if you are investing, there is plenty of investment opportunity. It will come down to doing your homework, getting sound advice, making the right decision and then following through.
1. The key market for me continues to be Brisbane, in the 20-35km (approximately) ring from the CBD – when using a buy and hold strategy.
2. Making money during a tougher lending period will see that more investors look to manufacture growth through renovations and developments. Watch out for the heavy competition in this space, as you might overpay when purchasing, and this may result in lower or no profits on completion of the renovation or development.
3. Be careful on the cost of tradesman in the next 6-12 months, especially in Sydney, Melbourne and Brisbane. Also, factor in delays, as tradesman are in high demand, and prices for their services are high at the moment. If you can wait 12, 18 or 24 months, you may be better to hold off until then. Keep an eye to the construction figures, or any talk of a downturn in the industry.
4. Because lending is difficult for most to obtain, investors are looking to other strategies, which include:
5. Many people are predicting growth in Hobart and Tasmania, and this could well be the case in the short term (6-12 months). However, be careful on the longterm growth potential, as I feel we are more likely to see greater growth and less risk in areas like Brisbane.
6. We will start to see the fallout from the construction boom (more likely towards the end of 2018), which is likely to be caused by: