Aug 29, 2018
People have short memories when it comes to property markets.
Recent price growth in Sydney & Melbourne - not seen in other cities - has given investors the misguided idea that they are the perennial leaders on capital gains.
Many are reluctant to consider Perth after it's recent downturn, ignoring it's strong performance in the past.
Many also still consider Adelaide a low-growth city despite its strong growth in previous cycles.
A recent 30 year study by PIPA (Property Investment Professionals of Australia) has shown that every capital city in Australia has had periods of strong growth AND periods of downturn in the last 30 years. They have also stated that investors have made profits by purchasing in all cities in the right cycle.
The take-home message for investors is to identify markets that have bottomed and are set to improve - and buy there.