Coordinator’s Message

By Adrian Vorbach

The lead article "Why proactivity provides profits," by Silverhall Director Mike Anderson, makes interesting reading. Property markets are cyclical in nature and to maximise capital growth they should only be held during periods whilst they are growing in value (uptrending). Fortunately, different areas in Australia have different growth rates and the aim should be to switch when a property starts consolidating into another area that is clearly growing – a bit like share trading really!

Author of "I buy houses: The Property Investors Handbook" Paul Do challenges the concept of why buying the worst house on the best street might not be the best idea. Cheap houses attract the most buyers and unless you can buy well and superficially renovate cheaply, you may well do better paying more for a better home that may have been over capitalised.

This issue also features two book reviews by AIA members. The first is a review of Paul Do`s book. Brian Cordiner advises that this book provides a step by step guide to Paul Do’s buying process stressing his "value" approach to real estate investing.

Adrian Vorbach is a Councillor of the AIA.