I had very simple rules, always buy below median price but aim to rent above the median for that style of house, always buy run down properties that need cosmetic but not structural renovation, always buy on land valuation but well below replacement cost for the structure, always in areas where employment prospects are strengthening particularly regional areas developing new industries or expanding current industry. I have never bought in a capital city, but always outperformed capital city growth rates by using those simple rules.
I will invest in property again for sure, I love it, just looks very bleak at current valuations and yields and needs a trigger to make it attractive again. Frankly, I still believe the case for a correction is strong as opposed to continued growth.
I do not believe its in a bubble yet, but remain concerned that the term has been thrown around daily for the past 12 months. A correction in the range of 10 to 20% is likely in my opinion, and any one of several factors could start the correction, the depth of it will be defined by how one of those factors influences the others.
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