A SPECULATIVE "BUBBLE": Much has been said by media lately that a "bubble" of inflated, unsustainable property prices exists. Combined with rate rise fears some economists claim, and others deny, that the property market is set to fall, or "burst". Indeed prices have stabilised and auction clearance rates dropped. But, is this a reflection of less buyers?.... or more property?

LOW DEMAND or OVERSUPPLY? Spring is peak listing season, and as many who have faced the dilemma of finding the best phone plan, insurance, or the ideal Christmas gift will know....... excess choice is sometimes so confusing & stressful you walk away altogether.

UNIT CAPITAL GROWTH OUTPERFORMED HOUSES: Latest RPData research is great news for smart investors who anticipated this trend and bought investor units: Units now outperform houses in capital growth (7.3% growth in unit values, beating 7% for houses) In the past 5 years there has been a switch to demand for units and this trend looks set to become the norm. Why?.............

NO PLACE LIKE HOME in HIGH DENSITY: In the mid 1990's, only 25% of property purchases by homebuyers were apartments. Now 35% of homebuyers are choosing units in high-density urban locales.

WINTER TRENDS: Open inspection numbers continue to remain strong, particularly in Sydneylinks' area of investment property sales. However, the trend that emerged at the beginning of 2010 has compounded to the point where 90% of clients I meet are now investors. First home buyers have all but disappeared, and it saddens me to think that the "Great Australian Dream" of owning your own home is almost purely a Dream.

HIGHS & LOWS: Sydney's income-to-house-price ratio is 9 times the median income. No wonder loans for owner-occupied housing are at 9-year lows! This naturally puts more people in the market for rental property.

GROWING & SLOWING: Property prices continue growing but at a slowing rate. Considering this, owners of investment properties currently leased with good returns are in a great position to sell! Increased investor finance in the last 12 months proves investors are buying up big.

Our contemporary mindsets with the attention span adjusted to the length of a Twitter update, sees the idea of a quick "flip" as highly appealing. But the idea of "Buy Low.....Sell High" to make fast money does not always equate. Once you've paid the agent, solicitor, strata, government and conducted a quick makeover you may be disappointed at the end profit. Property investment requires time to see good capital gain.

You must also consider that with the advent of the internet, the last sold price of the property is at the fingertips of your potential buyer. So, if 3 months after purchase you are trying to sell the property for $100,000 more, prepare for buyer cynicism.
Even with renovations one cannot guarantee added value. Your dream design is not necessarily compatible with the market and even an experienced property investor can over-capitalise or simply miss the mark.

The key to rising value may not be found in a run-down "do-over" but rather to select property that has characteristics of enduring desirability - attractive views, quality design, well-conceived layout and of course, location, location, location.

This will ensure optimum long-term growth potential and in the short-term ensure the property is always rented at a great rate.

It's a Win-Win.