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There’s been a lot of talk in the news lately about Australia’s ‘hot property market’ and the ‘property bubble’. It’s no wonder that you may be worried about missing the boat. Indeed many are, as outlined in “Investors’ irrational ‘fear of missing out’ exposes economy to severe risks, study says” (Daily Telegraph article 17 June 2015).

As property investing 101 states ‘don’t jump on board when everyone else is’ – particularly if the ship has been sailing in that direction for a while because at some point it will start to sink and if you haven’t been able to offload before it does, you will go down with it.

These markets (Sydney and selected Melbourne areas) may still be so-called ‘hot’ however they have been this way for an extended period of time and it is not sustainable.

Smart investors are not looking to be the last ones on the boat, they are buying in areas which show all of the signs for growth and where the interest is just starting. Thankfully for them, Australia has some good options to consider.

Smart investors also know that the higher the purchase price of an asset is above the median house price of the area, the more susceptible it is to market fluctuation. That is why they like to invest in within the median house price range. They will be waiting for the current ‘hot’ markets to come off the boil and allowed to well and truly cool before considering investing in them again.

The moral of the story is ‘safety first’. If the ship is getting too full and the destination is getting too hot find another one that will help you achieve your outcome. Look for another investment ‘ship’ to sail on…

Nick Holden

Nick Holden

Nick Holden is the Founder of Simple Property Investment and an insured, qualified Property Investment Advisor under the ASPIRE Network industry body. He is a Licensed Real Estate Agent, holds a Diploma of Financial Services (Financial Planning) and Cert IV Financial Services (Finance and Mortgage Broking). As there is no 'one size fits all' with property investment, he is on a mission to help ordinary Australians create wealth for their futures with personalised strategies and advice.