Migrating capital? Should I move my money to a better performing market?

What happens when a real estate market stops performing? Do you leave the money there to stagnate, or do you move it to a better market? Money Migration – what is it?

In 2003, the Perth market was booming. Properties were selling for as little as $200,000. Within just three years, property values doubled! Many people enjoyed fantastic profits… but then the market plateaued. Investors had the choice of sticking with the market until it boomed again (another ten to fifteen years) or moving their money to an interstate market.

Moving your money, or more officially known as ‘migrating capital’, is a great way to grow your wealth as you don’t have to wait a decade for market growth – instead you find a market that is just starting to experience some capital growth, and invest there.

In the Perth scenario, we moved our money to Darwin and Melbourne in 2007, as they were just beginning to perform. Once those markets began to fade, we moved our money yet again – this time to Sydney in 2012-2014. It is common knowledge now that Sydney is overheating.

With forecasts suggesting GDP will almost double to $217 billion by 2017, and with growth set to exceed that of any other mature city, Brisbane is now the savvy buy for the smart property investor.

Always ensure your money is working hard. Nobody likes lazy money.

How do I know which market is about to boom?

Markets will always give us signs indicating the economic health of an area. These signs can help us choose areas that are set to boom and those which are beginning to decline.

If you want to master migrating capital, it is essential to base your investment decisions on the most reliable data and information in the industry. We leverage RP Data and BIS shrapnel, and spend hours on the ground pounding the pavement in areas we are going to invest in.

How can I leverage the opportunity?

To migrate capital effectively you must get the right advice and support.

The CPS investment philosophy is to construct property portfolios that combine cash flow positive investments (regional/ value add opportunities), negatively geared investments (off the plan properties) with properties that have a Land component.

With this in mind and taking into account the need to migrate capital we have spent months reviewing many developments in Brisbane to find and negotiate the best deal for our clients.

Interested in migrating your capital? Contact us to find out how you can get a better return on your money by moving it to Brisbane.