Interest rates are currently at a 49 year low and real estate agents are reporting higher and higher levels of enquiry. Buying activity has also been reported to be on the increase so the question to be asked is, “Is this the right time to be re-entering the property market?”
Well, with First Home Buyer activity starting to slow due to the government’s additional First Home Owner Grant about to expire, I think now is the time for investors to re-enter the market. Yes, we will need to be cautious as there is still some economic uncertainty but the worst is definitely behind us, as can be seen in the renewed strengths of the global and local share markets.
NSW has seen one of the longest property price stagnations in history so there are definitely some bargains to be had, although investing in property is a long term strategy. In South East Queensland, the strong population growth will eventually give rise to a shortage of supply as available properties are snapped up. As we know, anywhere where there is a shortage of supply and excess of demand, prices must rise.
Yes, there is currently an oversupply of rentals but if you are looking at the long term and current property trends, it is quite likely that this oversupply will be filled very quickly. So now could be the time to snap some great bargains with the mindset of investing for the future.
My belief is that there has never been a better time to invest in property – the four factors of the strengthening economy, massive government infrastructure spending, record low interest rates and improving market confidence I believe will form a perfect storm and we will see property prices start to rise once again. I am looking forward to scouting some great bargains right now and you might want to consider the same. Remember, as always, when investing in property, make sure you get some good advice and buy the right property for you – the one that makes sense for your current financial position and your long term goals.
Subscribe to:
Post Comments (Atom)
Personally I am more worried about a REAL correction in the market. Many economists are predicting a W shaped recession overseas, as the toxic assets in the banking systems have not been cleared.
ReplyDeleteThere is also a very strong view that Australia has been artificially shielded from the GFC through consumer spending, most of which has been on credit. Because Australians still have HUGE personal debt levels there is a real danger of increased foreclosures with increased interest rates. Increased unemployment, caused by a W recession would accelerate this even further.
Living in Sydney I have seen ridiculous prices paid for houses and apartments. The market here is just primed for a solid correction.