Is Now The Right Time To Buy? Kyrillos Mansour Breaks Down Property Investing Fomo And Shares The Top Places To Invest In Each State For 2022

Everyone is looking for ways to generate wealth and invest in their future. For Australians, land is king, and property investment is the evergreen field of growth where you can be certain your investment is working for you.

When you’re looking to get into real-estate though, there are so many hurdles to jump through and red-tape to cross that real-estate agents become almost a necessity, and adding these third parties comes with its own complexities, such as wondering if they’re actually giving you the best deal they can offer. That’s why working with a Buyer’s Agency like First Brick is essential to ensuring you have a dedicated team on your side, seeking the best possible terms for your growth.

Kyrillos Mansour created First Brick Property Buyers Agency out of a desire to help others achieve their investment goals after finding himself in a trusted position with multiple successful business ventures under his belt. First Brick is an independent, full-service agency that puts its clients needs first and foremost, whether they’re experienced investors looking to gain an edge with their assets, first time investors looking to learn the ropes, or who want their interests handled completely ‘hands-off’.

So far, First Brick have purchased over 200 properties for their happy clients, and founder Kyrillos -always excited to help people on their real-estate investment journey- has joined us to share his thoughts on a question he hears almost every day: “Is now the right time to buy?”

To keep a long story short; When you’re financially ready to buy, there will always be an opportunity for you. With that said, let’s unpack this idea further.

Time in > Timing

Timing the market is impossible. Even with the most sophisticated analysis the world has to offer, you will never know the bottom of a market until after the fact. If today is the bottom, I won’t know until tomorrow when it moves up.

Time in the market is always more important than timing the market. The power of compound growth teaches us that the longer we hold onto a property or asset that is increasing in value, the better. Because of compound growth, even if the earlier years of holding an asset seem slow and like there’s barely any movement, the longer the asset is held, the bigger the increases in price you’ll see.

For example, a property worth $500k is increasing 10% a year. Year 1 value is $550,000 ($50k increase). Year 2 value is $605k (%55k increase). Year 3 value is $670k ($65k increase) and so on. Eventually, when you hold it long term, the increases become even larger.

Year 4 – $737k

Year 5 – $810k

Year 6 – $891k

Year 7 – $980k (90k increase here)

Year 8 – $1,080,000

Year 9 – $1.185m

By Year 25 at the same rate, the property would be worth 5.45M and Year 26, 5.9M (500k increase.

The point I’m demonstrating with the above is that the best time to buy is when you are financially ready, as time in the market always trumps timing the market.

Finding your opportunity

Regarding opportunity, Australia is not one market. The entire country doesn’t move in one cycle. Sometimes some cities are moving in an upwards trend, and some are moving downwards. Even within cities there are different trends depending on where you’re looking.

There are over 15,000 suburbs in Australia so it would be foolish to think that they all move at the same pace at the same time. Likewise, it would be equally foolish to assume that the ones near where you live are a representation of the entire property market. This is why investing in your own backyard isn’t always the smartest move, but many people fall for this trap because they believe that they “understand the market”.

The image below holds data for the end of the recent financial year. On that table you can see how all the major cities performed differently. Had you invested in Adelaide or Brisbane, more likely you would have made some very good financial decisions, whilst Sydney and Melbourne for the most part performed rather slowly.

Top places to invest in each state under 500k (currently)

As a bonus, here’s some more data for great value suburbs performing well under the radar.

NSW

1. Forest Hill – Wagga Wagga. Typical Value – $415,00. Yield – 5.76%. Stock on Market – 0.4%
2. Hillvue – Tamworth. Typical Value – $485,000. Yield – 4.92%. Stock on Market – 0.08%
3. Oberon – Bathurst. Typical Value – $490,000. Yield – 4.25%. Stock on Market – 0.59%
4. Grafton – Grafton. Typical Value – $490,000. Yield – 5.21%. Stock on Market – 0.8%
5. Lavington – Albury. Typical Value – $456,000. Yield – 5.06%. Stock on Market – 0.87%
6. West Wyalong – Wyalong City – Typical Value – $276,000. Yield – 6.12%. Stock on Market 0.44%

QLD

1. Thabeban – Bundaberg. Typical Value – $402,000. Yield – 5.93%. Stock on Market – 0.81%
2. Tivoli – Ipswich. Typical Value – $490,000. Yield – 4.89%. Stock on Market – 0.63%
3. Cambooya – Toowoomba. Typical Value – $475,000. Yield – 4.94% Stock on Market – 1.34%
4. Gordonvale – Cairns. Typical Value – $491,000. Yield – 5.43%. Stock on Market –  0.86%
5. Cranbrook – Townsville. Typical Value – $358,000. Yield – 6.45%. Stock on Market – 1.48%

SA

1. Salisbury Park – Salisbury. Typical Value – $480,000. Yield – 4.96%. Stock on Market – 0.22%
2. Willaston – Gawler. Typical Value – $450,000. Yield – 5.01%. Stock on Market – 0.61%
3. Brahma Lodge – Salisbury. Typical Value – $475,000. Yield – 5.06%. Stock on Market – 0.63%
4. Craigmore – Gawler. Typical Value – $450,000. Yield – 4.91%. Stock on market – 0.85%
5. Salisbury Downs – Salisbury. Typical Value – $465,000. Yield – 4.83%. Stock on market – 0.5%

TAS

1. West Ulverstone – Devonport. Typical Value – $498,000. Yield – 4.28%. Stock on Market – 0.35%
2. Ravenswood – Launceston. Typical Value – $402,000. Yield – 5.79%. Stock on market – 0.24%
3. Wynyard – Burnie. TV – $480,000. Yield 4.59%. Stock on market – 0.74%
4. Gagebrook – Brighton/Hobart. TV – $402,000. Yield – 5.33%. SOM – 0.39%
5. Upper Burnie – Burnie. TV – $464,000. Yield – 5.18%. SOM – 0.99%

VIC

1. Kyabram – Goulburn River Valley. TV – $440,000. Yield – 4.83%. SOM – 0.8%
2. Shepparton – Shepparton. TV – $455,000. Yield – 4.69%. SOM – 1.18%
3. Euroa – Strathbogie. TV – $465,000. Yield – 4.36%. SOM – 1.23%
4. Mooroopna – Shepparton. TV – $395,000. Yield – 5.05%. SOM – 0.96%
5. Bairnsdale – Bairnsdale. TV – $435,000. Yield – 4.82%. SOM – 1.3%

WA

1. Waikiki – Rockingham. TV – $482,000. Yield – 5.28%. SOM – 0.75%
2. Orelia – Kwinana. TV – $325,000. Yield – 6.49%. SOM – 0.91%
3. Thornlie – Perth. TV – $466,000. Yield – 5.06%. SOM – 0.97%
4. Mirrabooka – Perth. TV – $445,000. Yield – 5.31% SOM – 0.78%
5. Parmelia – Kwinana. TV – $377,000. Yield – 6.39%. SOM  – 0.86%

Connect with Kyrillos Mansour and his team at First Brick Property Buyers Agency through their website or their Facebook, LinkedIn, Instagram, Tik Tok and YouTube social media pages to learn more about how you can generate wealth and success through property investing. If you’re looking for even more investing advice, check out the popular First Brick Property Podcast available through Spotify and Apple Podcasts.