Preparing for Apartment Armageddon

Hi Scott,

A few years ago I read your prediction that inner city apartment prices would fall. Since then I’ve been saving hard and am relieved to see property prices finally going down! I am now a few months away from having enough for a 20% deposit. Do you have any advice for first home owners looking to buy in the next year?

Tammy

Hi Tammy,

Well done for playing the long game!

(In 2015 I wrote ‘an open letter to the young people of Australia’ where I predicted that 2018 would be the year that first apartment owners would get their revenge, because of an oversupply of newly built inner city apartments.)

My first bit of advice is that there is no need to rush.In fact, 2019 is shaping up to be an even tougher year for the property market. A NAB survey released late last month found that confidence in the housing market has hit new lows (then again, NAB’s own behaviour hasn’t exactly been a confidence-builder either).

The apartment market has gone from FOMO (Fear Of Missing Out) to FONGO (Fear of Not Getting Out).

Use it to your advantage. With a large (and growing) deposit, and the ability to negotiate, you’re in the box seat.

FONGO on!

Scott