The emotions you can go through when buying property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about the emotions you can go through when buying property.

Many buyers face the emotional roller coaster.

I would define this as the ups and downs in the buying process.

One second your so excited, you can’t stop smiling.

The next your upset, nervous and generally unsure of anything.

This generally happens at key moments during the search.

Great highs can be felt during inspection and having a positive feeling.

Then even higher highs when you feel the property is within budget.

An offer is put forward and your entire demeanour can change.

From nervously putting the offer forward.

To becoming quit unsure as you wait for a response.

Unsure if it will get accepted or not.

You must realise all these emotions are totally normal.

I mean it’s a decent amount of money you’ll be investing.

It’s important to realise that logic is another vital component.

When you go through this roller coaster.

Remember, in many instances there are many properties out there.

If it’s meant to be with this property, it will happen.”

Is it better to buy property at a certain time of the year

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about whether it’s better to buy at a certain time of the year.

I guess as a buyer, this comes down to whether your in a good mood to look at properties or not.

In theory, it’s more preferred to be sunny than raining.

Resulting in a better mood and possibly better prices.

It’s been widely regarded that Spring months are the time to sell.

Prices should in theory be higher during that time.

It’s sunny, the birds are tweeping, properties look their best.

Like they’ve been training for a high end fashion show in Milan.

As a buyer this is an interesting point to note.

Winter are usually the months associated with poorer results.

Who likes freezing whilst searching?

In theory, the colder times of the year may offer some benefits as a buyer.

Then again, there’s no definite answer.

I think it really comes down to the property and the market at the time.

If the property is fantastic, it will probably perform well in most weather conditions.

If the market is strong then demand should be high, and vice versa.

One thing that can cause prices to fall is too much supply.

This isn’t a seasonal issue.

It’s simply building too much and the market not being able to absorb the new supply.

Either way, it’s always nice to get a little tan whilst searching.”

Why property is so interesting

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why property is so interesting.

Property has so many aspects to it.

There are different sectors from residential, retail, commercial and industrial.

People buy property for different reasons from occupying to investing.

Therefore there are different thought processes involved.

Some are more emotional and some are more logical.

In the residential space.

Every property is basically different.

Even in the same development, with the same exact floor plan.

The light, the sounds, the temperature.

Can all be different.

Virtually every house is different in some way.

Therefore you never really see the same property twice.

The other thing is any property can be changed even with the same design.

The styling, wall colours, window coverings, light fixtures, appliances, layout.

You enter neighbouring properties in a development and get a totally different experience in very similar spaces.

The reasons why people live in an area, totally changes for differing areas.

Often it’s down to affordability.

But even so, that area becomes home and many wouldn’t move if they could.

Property becomes more than 4 walls.

It’s the vibe, agh, it’s the vibe. I rest my case.”

Interest rates have a greater effect on property prices concludes RBA

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about a recent finding by the RBA and house prices.

I’ve often believed many factors affect price movements.

Supply & Demand.

Population.

Unemployment.

Economic growth.

Construction costs etc…

The RBA recently concluded that interest rates have a large and significant direct effect on construction activity.

This is because the cost of finance becomes cheaper.

If something usually becomes cheaper, more people will usually use it.

The RBA continues to explain that low interest rates.

Explains much of the rapid price growth in housing prices and construction over the past few years.

Once again as the cost of money becomes cheaper, more people will use it.

The report found a 1% cut in interest rates boosted house prices by 8% over the past 2 years.

The report also claims that high immigration levels contributed to growth in prices.

This is more people becoming residents and demanding more property.

More demand for property, will put upward pressure on prices.

Which at the end of the day, does come back to supply and demand.

However, the key finding is interest rates have a greater effect on property prices than initially thought.”

Are positive cash flow properties possible in this market

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about whether positive cash flow properties are possible in this market.

In short, Yes!

I come across them a few times a week around the country.

It feels like when you watch your favourite TV show.

It’s exciting as you eagerly await a familiar storyline of strong rent versus expenses.

People often ask me, what do I think is more important.

Strong cash flow or capital growth?

I often answer them with capital growth or adding value is what you need to make money.

But strong cash flow helps to hold the property.

Many investors purely build their portfolios on positive cash flow.

Some like a balanced approach of some slightly negative properties and some more neutral to positive.

Some are able to hold negatively geared properties.

I think it really depends on your own circumstances.

One thing I do know.

Is having extra money coming in every week, isn’t a bad thing.”