Why we buy where we buy

Why we buy Where we buy

G'day guys how are you it's David Bugeja here co-founder at Bugwash Property. Today I want to do a video on where we buy.

There’s one thing that we look for when it comes to buying and we’re looking for this thing called Capital Growth. Capital Growth is the number one way to wealth in property investment. Sure, you want the best return you can get but the the capital growth is what it's all about. So the way to maximize capital growth is to buy in a rising market. 

I’ve been in this game now for 22 years and what i've learned along the way is that the number one most important thing is timing, when you get into a market,  when you get out of a market. What I learned along the way is that property works in cycles - there’s four phases to every cycle. You've got the Boom Phase, Slow Down Phase, Slump Phase and Recovery Phase and if not all the money, most of the money that you make, is in the Boom Phase of the cycle. So you want to you want to buy your property in the Boom Phase and then get out at the top.

So if you look at, as an example, a lot of our clients have bought property on the Gold Coast 2015, 16, 17, right up until now. There’s been some fantastic growth over the last few years, lots and lots more growth to go, but if you're buying property in the Slump, Slow Down or Recovery Phase of the cycle you're going to have to wait for a passage of time before your property starts to grow in value.

When you're buying in a growing market or a rising market, not only are your prices going up, your rents are going up, and if you're buying, if you're investing in the right types of properties in the right markets at the right time and you know what you're doing, you're going to get into cash flow positive property.

So if you can buy property, borrow all the money, and your rents coming in and tax deductions coming in are more than what's going out, that's just awesome. So it's all about timing your run and obviously, you know, there's things like location is very important, making sure that you’re investing in property that’s got good infrastructure all around it, plenty of jobs nearby, all that sort of stuff. 

But what supersedes that again, is buying in a rising market, knowing when to get in and when to get out.

Thanks guys.

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