Think you know how to pick a winning property? Yeah, nah.
The Australian property market is full of “wisdom” passed down from your mate’s cousin who bought in Toorak in 1987. Spoiler alert: what worked then doesn’t work now. Here are the biggest lies still doing the rounds, and why they’re absolute rubbish.
Lie #1: Fancy Postcodes = Better Returns
Prestige doesn’t pay the bills, mate.
Everyone bangs on about “blue-chip suburbs” like they’re some kind of property holy grail. Meanwhile, affordable suburbs have been absolutely smashing it in growth while you’re paying half a million extra just to say you live in the “right” postcode.
While you’re dropping an extra $200K for postcode bragging rights at your next dinner party, smart investors are quietly building wealth in areas with actual growth drivers. You know, boring stuff like new train lines, jobs, and people actually wanting to live there.
But sure, keep chasing that prestigious address. I’m sure your ego will keep you warm when your capital growth is flatter than a can of VB left in the sun.
Lie #2: Save 20% or Don’t Bother
While you’re saving, you’re losing.
Right, so you’ve decided to be “responsible” and save a full 20% deposit. Good onya. Real mature.
Here’s what’s actually happening: property prices are going up faster than your savings account. Congrats, you played yourself.
Do the maths (yeah, with an ‘s’). If you wait two years to save that extra $50K but prices rise 7% a year, you haven’t gotten ahead. You’ve gone backwards. You’re like a bloke running on a treadmill thinking he’s training for the City to Surf.
Sometimes paying lender’s mortgage insurance is the smart move. I know, I know, it hurts your “financially responsible” pride. Get over it.
Lie #3: Wait for the Perfect Moment
Mate, there’s no perfect moment. There never was.
Let me guess: you’re waiting because interest rates might drop? Or maybe you reckon prices will crash? Or perhaps you read some bloke’s blog predicting the market will collapse any day now?
Cool story. Meanwhile, you’re paying rent. Every. Single. Month. That’s someone else’s mortgage you’re covering, champion. How’s that strategy working out for your wealth building?
Property owners who bought at the “wrong” time still did better than renters waiting for the “right” time. Every. Single. Time.
Stop trying to time the market like you’re some property market Nostradamus. You’re not. Nobody is.
What Actually Works (Unfortunately, It’s Boring)
Skip the sexy suburbs. Run the numbers. Look at infrastructure projects, employment growth, and supply constraints. Buy based on data, not because your real estate agent mate reckons “it’s the next Paddington.”
It’s not exciting. It won’t impress anyone at your barbecue. But it’ll actually make you money, which is sort of the whole point.
Ready to stop following terrible advice from Facebook groups?
Book a free call with BuyerBud. We’ll give you actual expert advice, not just vibes and wishful thinking.
This is general information only and not financial advice. Seriously, talk to a qualified property advisor before making decisions. We’re not your financial planner, we’re just here to stop you from doing dumb stuff.
