Gen Y not afraid to walk away when conditions are not ideal
17th Jan 2016
MARTIN Peril has bought three properties so far, two of which he sold, securing the art deco apartment he currently lives in.
He’s part of a new generation of buyers not afraid to mix renting, owning and investing to get what they want out of the property market - and not afraid to walk away when necessary.
“(The) First property (I)was bought in 2008 and sold in October 2010. While I owned the first one, I purchased off the plan in Teneriffe which is Como, rented for two years in anticipation of Como settling, which it did in May 2012. Then moved into Como and lived there for a year while looking for another property. Then found the current property in New Farm, a 90-year-old art deco one-bedroom 100 sq m apartment.”
Grow Property Group managing director Adya Shabanzadeh in Teneriffe. Picture: Tara Croser.
Grow Property managing director Ayda Shabanzadeh deals with hundreds of young people on the hunt to make their first investment.
“Most gen Y investors are looking for properties that are as close to the city as possible,” she said.
“Given the majority of employment locations and lifestyle desires are in the city, gen Y want property that allows convenient travel there. Which means that in the end they gen Y tend to opt for apartments with high amenity in nearby suburban areas such as Teneriffe, Newstead and New Farm that have a good public transport network but are still close to trendy bars, cafes and work.”
She said the allure of the Brisbane market was its value.
“The cost of renting and buying in Brisbane, in terms of weekly repayments, is very similar in price in comparison to other Australian cities like Sydney. The value that investors get in Brisbane is incomparable to other popular Australian cities.”
Mr Peril said he was always on the lookout for property options, researching the market all the time.
“That’s why we prefer inner city and areas we’ve researched where we can see what’s happening in rentals and yields,” he said.
Mr Peril said homes within 2km of the CBD ticked boxes for him.
”Even if there is supply coming on in next 18 months, it will be a short term hit in rental yield. It will benefit from longer term capital growth and value, providing you’ve done your research well and bought at a good price.”
He said if you were buying into a body corporate situation, whether older building or new, it was important to get involved in the body corporate.
“We know horror stories with body corps but if you are proactive and can present a case that shows things you want can improve everyone’s property value it helps.”
Mr Peril was already on the hunt for his next big purchase.
“Money is relatively cheap at the moment, but LVRs have changed. It would be a strategic move on our part. but has to be at right price and right lending terms. It’s a matter of finding it first.”
One thing he will not do, he said, was enter a bidding war with older buyers.
“Nine out of 10 downsizers are cash buyers with access to a lot of resources because of their age. They can make unconditional offers and are emotional purchasers, You don’t want to compete in an emotional bidding war - and definitely not with cashed up buyers, they are not going to compromise, you just have to walk away.”
His goal, he said, was to build wealth for retirement using both career and property.
“I started my own company Launch Training Group, that’s my focus. My wife has a strong career in property development. Long term property will give us good returns. Our careers are our focus now.”
(Source: The Courier Mail)