With the cracks in Melbourne’s apartment market starting to widen, just as I had previously warned, it can be tough to know what to do in what’s being touted as a volatile market.
The building of apartments has boomed in many of the state capitals due to demand from investors and first-time buyers that can’t afford the house in the suburbs.
But the astounding number of large high-rise developments being built is leading to oversupply – and Melbourne is one city that is feeling the effect.
And as I have written previously, Brisbane will be next. So what is an investor to do?
Block out the ‘property noise’
Property noise is the mix of property news, commentary, opinions and speculation that all predict fire and brimstones for any investor.
Don’t be fooled into believing everything you read. Be savvy and get educated so you can sift through the often incorrect or misinterpreted information out there.
If you pay too much attention to the property noise, you’ll end up feeling stressed and overwhelmed, constantly anxious about past decisions you’ve made and fearful about the property decisions to come.
Property noise can affect you whether you’re a seasoned investor or a first-time buyer so it’s important to take what you hear with a grain of salt.
It’s all about strategy
Your choice of investment property will always come down to your goals and strategy.
So if an apartment in Melbourne fits your strategy and long-term wealth creation goals, then you don’t need to fear what the media is telling you.
But it might be helpful to challenge your points of reference with someone who can independently (with an unbiased point of view) share a wider, more educated and diverse perspective, enabling you to make well-informed decisions.
Every property that doesn’t fit your strategy will be the wrong choice, so as long as you choose a high-performing property that fits your strategy, you’re likely to be on the right track.
If you’re finding the property noise simply too much, get an education around property investment that’s not driven by fads and fear, but by real measurable goals and strategies to succeed.
Find someone you can trust who has experience in property investing and can guide you on your journey.
A buyer’s agent can help you define your strategy and stop you from making costly mistakes.
The right person will also be a sounding board to bounce your ideas, thoughts, concerns and opportunities off.
There are never going to be ‘perfect’ circumstances for property investing, but you can’t let this stop you from taking action and achieving your goals.
To keep a steady hand in a fluctuating market, you need to be smart, get some advice and plan properly.