The Slow-Cooked Passive Property-Profit Strategy / Ep 231

In any given property market you observe different layers / different price points or bands. Each one of these specific price bands often have different characteristics. Lower price bands may have higher yield (specifically, the rental income relative to the value of the home is higher than in other areas), but often these properties have lower capital gains prospects too. All the reasons why they’re cheap today, are likely going to be the reasons they’ll be relatively cheap tomorrow. Further, and this seems counter intuitive – these lower value homes may contain more property specific risks and more market risks. Lower price bands may attract a lot of first home buyers or property speculators or investors too. The next band up in price give you homes fit for purpose for young families. Moving up a bit more you start to hit what I call the 'upgraders' band – this is the price band often most influenced by changes to lending criteria and interest rates. Let’s keep moving up though – Eventually though you get to the high-value price band where there are fewer buyers, who own property without mortgage finance...