• 30 November 2015

Barriers to Accumulating Multiple Properties

It is great to see Property Club members engaging with my Ask Kevin Young videos – I am getting so many fantastic questions that it’s difficult to keep up with them all.

Last week’s episode “Why Multiple Properties?” with Dave from Queensland’s query hit a chord with people who feel they are “stuck” with a no growth in the first investment property. Here is a comment on my website from Leanne who wanted further information:

“You didn't answer this question correctly. From what I read, Dave has been waiting for the last 10 years for the property price to rise (which it hasn't) so he could use the equity in it to buy a second property. It concerns me a little I have just bought a unit in Mt Gravatt through the PC. I better not end up in this boat. How many units have you and your children bought through the PC and off the plan Kevin”

There are many parts to this comment, so I’ll address each separately to make sure I cover it all.

The Principle of Multiple Properties

First – my main point is that you can't get rich on one property. You need many properties and you can’t rely on one basket. Yes, the Gold Coast has been flat since 2008. This is because of the law of supply and demand setting prices.

We were happy to see doubling in four years to 2003 and again up to 2007 but this was checked with many builders flooding in to benefit from this boom. And this they are doing right now in Sydney and Melbourne. As a result, Gold Coast prices have not performed for investors buying in at that time. In particular Robina and Labrador saw 10 years planned development happen over three years. Too many bananas in the store! ...  read more

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