Agreed
Great minds think alike
Hi again Daniel,
Re sellers market, yeah, it appears that's the case now.
However, if you purchase a good property, (fits your capital growth & other criteria) for what you believe is a fair price, at any stage in the market, you should be fine.
I would rather have a solid & proven performer (in my opinion this is a blue chipper), than a rural property. The rural may have great gains now & cash flow but the capital gain over the longer term is what I'm after. I don't believe the cap gain will be as consistent in rural areas. There's no shortage of land out there & this scarcity factor is one of the factors that makes inner city property more sought after & susbsequently drives the price up.
Go back to your strategy. You say you're after cap gain. Have a look over the rurals. Their gains are sometimes dependent on a single business or industry. They sound fine when you're presented with a (eg) 50% cap gain over the last few years, but how much growth have they had on average over a 10 or 20 year timeframe? (I will probably be chastised for these comments) Compare this to the blue chip gains over the same periods. Historically, the blue chips are more reliable & consistent.
I guess you could always hedge your bets & buy 1 blue chip & 1 in regional area?
I believe in that old adage, there's no way to really time the market, it's time IN the market that counts if you're chasing capital gains.
Which areas are you looking at now?
Regards,
M&M
Great minds think alike