Who Are You and Why Do You Want that Property?

Graeme Salt

I have seen a whole swag of emotions in my clients as they battle with a rising property market. They include:

  • Anger at rising prices
  • Frustration at frequently being pipped to the post on auction day; and
  • Fear of missing out on a property


This prompted me to ask, why is it so important to many of us to own our own place (while there are others do not need to own the place in which they live)?


Everyone has their own logic when it comes to property and money. Using this logic, most people can justify their property decisions. It seems to me that, once someone understands who they are, they can work out how they should respond to a strong market. Below, I will set out some real life examples:


Graeme and Victoria. This is me; my wife and I bought our house in 2009. At the time, renting may well have been cheaper. But we decided our kids couldn’t cope with the potential upheaval of landlords deciding to sell or move back into their own homes. Buying gave us peace of mind

Mike and Karen were in a similar position. In their case, their son was about to start school and they wanted to be near his school. Buying in a strong market has avoided them having to travel across Melbourne twice a day.

Tina is the opposite. She is not in a rush; I've arranged a pre-approval from a bank, but she knows that there is a lot of momentum in the market. Tina also knows, about 17,000 dwellings a month are being approved – once they are built, prices will settle down.



Martin and An-Wei have really benefitted from the growth in Sydney property prices. They have a clear wealth-creation strategy and because their current home has increased in value, they are looking at two approaches - both of which involve using the increased equity in their own home:

1. Buying an investment property in Brisbane (where prices are not rising too much)

2. Taking out a line of credit against their home to invest in equities


Julie is also an investor. She has concluded Sydney does not offer her value for money - so I have arranged finance for her to purchase in Bathurst – where her dollar will go further. It’s a pleasant city with strong rental yields. Julie’s character does not need her to live somewhere she owns; she will keep renting in Sydney, happy in anticipation of her investment’s growth.

Sue is a pragmatic person. Her approach to property is do a lot of research. Late last year she bought a property in Dulwich Hill in anticipation of the light rail extension. Her view is that even if the overall market is at its peak, her specific situation makes capital growth likely.


All the examples above are real-life. Each client would not have made the same decisions as each other. But, according to their own logic, their decisions are entirely justifiable. Who are you and what will determine where, when and how you buy property?


For a no-obligations chat about your home loan needs, please call Graeme on 02 9922 5055.