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.

Leave a Comment

Your email address will not be published.

We’ll make Property Investment a simple process for you.

Head Office
Phone
Glenn
Email

Simply fill out the form below and we’ll get back to you.

Name(Required)
This field is for validation purposes and should be left unchanged.

Bugwash Property Icon
Stay Connected

The information contained on this website is general in nature and neither represents nor is intended to be specific advice on any particular matter and does not take into account your personal circumstances, needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial and legal advice and read all relevant contracts, Product Disclosure Statements and other offer documents prior to entering into any contract or acquiring any financial or investment product. The contents of this website are not to be relied upon as a substitute for financial or other professional advice. Your access to and the use of this website is at your own risk. This website and its contents are provided to you on an “as is” basis and may contain errors, faults and inaccuracies and may not be complete and current.