It won’t hap­pen overnight

The Advertiser - Real Estate - - Leamington Rd, Aldgate -

Sure the ren­o­va­tion and de­vel­op­ment ge­niuses can some­times turn their skills and luck into a quick profit on a prop­erty, but the rest of us need to take a deep breath, keep calm and hold it for up to a decade.

Some­body who bought prop­erty here three years ago would be pretty an­noyed now if they had planned to sell within a year or two, with prices go­ing nowhere in that time. Ade­laide’s me­dian house price in June 2010 was $410,000 and in Septem­ber last year was $397,000, ac­cord­ing to the Real Es­tate In­sti­tute of Aus­tralia.

Surg­ing house prices in other states in the past year have been wel­comed, and many ex­perts ex­pect more solid growth in 2014 but warn that the cy­cle may turn in 2015. This means any­one who buys in 2014 may be look­ing at a few years of flat or neg­a­tive growth. If you in­vest for the longer term, even if there is a flat spot in prop­erty price growth, chances are rents will be ris­ing, giv­ing you an im­proved in­come much like ris­ing share div­i­dends keep stock­mar­ket in­vestors happy. Smart­line Per­sonal Mort­gage Ad­vis­ers ex­ec­u­tive di­rec­tor Joe Siri­anni says a five-year goal ap­pears to have the best chance of suc­cess.

‘‘Five-year goals re­quire an on­go­ing com­mit­ment to en­sure they are achieved, but the end re­sult doesn’t feel like it’s go­ing to take for­ever to achieve,’’ he says.

‘‘While it’s true that pa­tience can be a virtue, this shouldn’t be con­fused with just wait­ing for some­thing good to hap­pen. We need to be pa­tient but we also need goals and a plan.’’

Write down your ex­pected, best and worst-case sce­nar­ios for your real es­tate in­vest­ment. Use a spread­sheet if you know how to use those new­fan­gled spread­sheet pro­grams. It will give you some­thing to mea­sure against rather than just hope for the best.

So swap those pesky oneyear goals for a de­tailed 10-year prop­erty plan. It takes the pres­sure off you for quick re­sults, and gives your prop­erty the chance to ride out the in­evitable ups and downs that all in­vest­ments ex­pe­ri­ence.

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