There are lots of opportunities for buyers in 2019 as the market changes. After 30 years in real estate, Adrian Bo from McGrath Real Estate shares his insights on the buying opportunities he is seeing in the marketplace.
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Here’s the transcript of the video:
Adrian Bo thanks for joining Proptech Carpool with Soho Hey Trent, how you doing? Good to see you, thanks for being in the series Yeah, no problem. That's awesome, very excited about it's fun. Let's say I'm a buyer, I guess what are the opportunities that you're seeing for buyers in in your Marketplace? 2019? Okay. Look, you know cycles are like seasons. So this is my 30th year in the industry Trent, and I've seen seven cycles and quite frankly, they're actually quite predictable. So usually you'll see 4-5 years of quite good growth, which we have seen, then usually 18 to 24 months of correction usually by some anomaly last time, it was the GFC this time it's the sort of credit crunch and then usually 2-3 years of stabilisation and then the cycle repeats itself. So, you know a bit like it never stays summer all the time. It turns into autumn, winter etc. the only thing is there months not years. these cycles are also very predictable in that it never will stay low or it will never stay high they always will change but the media get very excited, the public have got short memories. and they tend to get very flustered or stressed or quite anxious over the whole situation. Yeah. Sure. So do you think it's a good time to buy now? Definitely. Yep, so as much as we realise the market is a really good forum at the moment in terms of affordability. You could set your clock by that will change, okay. So we've probably got anywhere between sort of 1 to 3 years where you know prices we know for a fact are less than they were 12-18 months ago. Will they change in a hurry? hard to say but you know in the next cycle be it sort of 2,3,4,5 years. There's no doubt that everything in hindsight it's going to look like really good value. So absolutely. I mean the other thing Trent is, if you're looking to buy something to live in well, the alternate is rental. and if you've got the deposit and interest rates are the lowest they've ever been in history, and you like the property. Well, it just makes sense to just buy it. Even if you're looking to buy an investment property. Look I know there's a threat of maybe some of the incentives being removed, you know, call it negative gearing and capital gains etc. but in saying that, where else would do you want to put your money? I mean bricks and mortar over a long-term capital growth with some yield. it's a tangible palpable asset that you know over a long-term period you will perform well.