When you know where to look, you can always find great value and returns, even in a falling property market. The key is proper research.
With a research-based approach and property market expertise, DPN advises a long-term view of property investing, amid declining prices. House prices don’t ascend in a diagonal line forever. There are periods of highly prosperous activity and subsequent corrections.
Certain types of dwellings generate a strong rental return or capital growth, regardless of the market.
Securing strong rental returns
Dual-income (also called dual-key) properties represent good value, regardless of tightening market conditions. They include two self-contained dwellings on the one block of land. This allows owners to rent both separately, to leverage two income-producing properties on the one title and generate returns via positive cash flow.
Manufacturing strong returns through capital growth
Duplex properties are two adjoining dwellings sharing a common wall. A duplex on strata land will start to build equity from the first day. It provides a more accessible entry point for property investors to build wealth, without waiting for growth to return to the market.
Timing plays second fiddle to skill
The opportunities for returns that come out of falling property markets reveal that skilful investors can find value at any time. An example of this is the GFC, whereby prices recovered significantly in the years after.
In a correction, it’s important to be forensic with research and surround yourself with the right people.
For more comprehensive information, see DPN’s article: There is always great value and returns with property, if you know where to look.
Disclaimer: Chan & Naylor take no responsibility for the accuracy of any research material of contributors to our newsletter. Contributions to our newsletter such as this article, “Properties to Consider in a Falling Market”, are meant to be educational only and Chan & Naylor does not endorse any promotional material promoted in their articles. Readers should do their own research to determine the accuracy of their material.