Invest
Deals and discounts in the downturn
Given the current environment, should you be chasing capital growth or is it a yield play? A buyer’s agent has weighed in.

Deals and discounts in the downturn
Given the current environment, should you be chasing capital growth or is it a yield play? A buyer’s agent has weighed in.

Speaking on a recent episode of nestegg’s sister publication, The Smart Property Investment Show, Simon Cohen, the co-founder and director of Cohen Handler, explained that there are plenty of good deals to be done despite COVID-19’s grind on the economy.
“Let’s be super clear: When we look at areas like Sydney especially and blue-chip areas in a lot of states – blue-chip property never really crashes – it’s not like the stock market.”
But for Mr Cohen, what he is seeing is that “the ‘sting’ has definitely come out of the marketplace”.
“Vendors [and] property owners are a lot more motivated to do deals, but there are very few properties on the market,” he added.
Mr Cohen noted that many people see no need to sell right now, saying: “The valuers aren’t knocking on your door to foreclose anymore; you’ve got three, or six or 12 months of free mortgage repayments, and interest rates are at an all-time low.”
As a result, anyone who is selling up, regardless of the reason, is motivated to do so.
“So, that’s where we’re getting the best deals. We’re seeing discounts of 10, 20 or even 30 per cent.”
For his clients who are cashed up or finance-approved, Mr Cohen said, “They can really take advantage of this environment.”
“If an opportunity knocks, from my experience, it doesn’t knock twice,” he said, highlighting that the government is putting things in place to revert the economy to normal as soon as it possibly can.
“If you see opportunity, take it and run.
“Because the second confidence comes back – and confidence comes back very quickly – you don’t want to be trying to jump in when everyone else is jumping in.
“Right now you can really pick, have your choice of what’s out there.”
And when posed the question of whether you should be chasing capital growth or yield in the present conditions, the buyer’s agent was firm: “I definitely think capital growth.
“I think yield will be good because you are going to be buying properties cheaper, but the upside by getting a killer deal is still, for me, the most exciting thing.
“You want to say you bought it for $1.5 (million) and you and I are talking in six months and you’ve just been offered $2.2 (million) – that’s what gets me excited.”
About the author

About the author


Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more

Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more

Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more