In a boom market everyone moves at the same speed, said Hegney, but now we’re in a three to five-year stage of low to steady growth where some will move ahead but others won’t.
This is the stage where strategy is pivotal, said Hegney.
Understanding where people are moving to over the next 30 years is the single greatest knowledge investors can arm themselves with, he said.
“If you can answer the question ‘where are people going to live?’ then you’re set.”
The Australian Bureau of Statistics (ABS) Mobility Survey is one of many reports investors should become friendly with, said Hegney.
In houses, moving for a better location will become the more prominent feature than the bigger house, he said. “Many will choose to stay in a good location and renovate the home without having to move.”
Hegney said if looking at apartment buyer movements, the trend is nothing new with 60 per cent of apartment dwellers moving from apartments within two years and 30 per cent moving in 12 months, according to the ABS Mobility Survey. “This suggests that two-thirds of buyers are getting it wrong.”
Learning from these mistakes, trying to work out what people want to live in and changing a property to suit that is the best way to ensure a long-term asset and capital growth, he said.
Hegney said it’s also about jumping ahead of the migration trends and assessing which areas will best suit the inevitable trend of densification across the cities.
“Which areas will make greatest use out of existing infrastructure? If the past 30 years was about suburbanisation then the next 30 years is about the consolidation of cities,” he said.
“So investigate those areas that can do it well and will become more desirable as a result. It’s about picking the Paddingtons of the next 30 years.”
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Ajay Krishnan
Aussie Home Loans
0434 145 733
ajay.krishnan@aussie.com.au
Artice courtesy of www.apimagazine.com.au.
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