Here at The Successful Investor, we’ve started to notice just how wrong property commentators are can be about NRAS. On the Property Observer blog, Xavier Perronnet did just that. You can read his article here, but be sure to make note of Michael’s response below:
I didn’t mind the article until this:
In some cases keeping your money and just going on a nice holiday is a better option.
Spending a deposit on an investment property on a holiday is a better option than buying one of these properties? Really?
The mistake too many commentators are falling in to is making blanket statements about NRAS properties. With little knowledge they form an opinion one way or another, and you seem to have done the same.
You have effectively said there are no good NRAS properties in the whole of Australia. That is just wrong. Just like the normal investment market there are good NRAS properties and some very poor ones. And just like the normal investment market there are operators selling NRAS properties at inflated prices and there are some operators who do not.
Advising against every single NRAS property and suggesting people are better spending their money on a holiday is just bad advice. We have sold NRAS properties in Flemington, Kensington, Essendon and Footscray. Do you really think our clients investors are better off over the next 20 years by having a holiday than investing in a quality property in one of these locations?
Sure buyers have to be careful and I point that out in articles I have written for the NAB website at http://moneybasics.nab.com.au/michael-sloan but being careful is very different to telling people to spend their savings on a holiday instead of investing.
We are going to start addressing some of the common myths surrounding NRAS, so stay tuned to the TSI blog.