A SPECULATIVE "BUBBLE": Much has been said by media lately that a "bubble" of inflated, unsustainable property prices exists. Combined with rate rise fears some economists claim, and others deny, that the property market is set to fall, or "burst". Indeed prices have stabilised and auction clearance rates dropped. But, is this a reflection of less buyers?.... or more property?
LOW DEMAND or OVERSUPPLY? Spring is peak listing season, and as many who have faced the dilemma of finding the best phone plan, insurance, or the ideal Christmas gift will know....... excess choice is sometimes so confusing & stressful you walk away altogether.
INVESTING IN HIGH DEMAND: It is always a good time to buy investment property in locations characterised by low vacancy rates, high demand, and quality tenants. Sydney's inner city & east remain a good example. We invite you to view sales listings at our website. Fully furnished leases, a specialisation by Sydneylinks, further enhance your investment yield.
RISE UP: INTEREST RATES, WAGES & RENT: Employment is high and wages are rising. In a quality location with great atmosphere and amenities close to the CBD, rent rises are absorbed by executive tenants who identify the value in paying the increase, and understand mortgagees have rate rises to cover.
FLIPPING or KEEPING: It's a buyer's market, but a strategy of buy today, renovate & sell for a profit (known as "flipping"), is not always that easy. The best approach is to make money from the rent & the long-term capital growth. A housing shortfall and no available land in Eastern Sydney suburbs like Potts Point indicate that supply is limited and long-term growth is strong.
ME or MEDIA: Media can help inform our decision. However its also about buying at the time that's right for you and weighing up external hype & hysteria against your own wants, needs and ability. Prices may stabilise but as far as a plunge....sorry to burst you bubble but I won't hold my breath. If you wait for that day, you'll miss out in a few years join the crowd saying "I could have bought that place for half the price"
Most economists predict a growth in property prices by mid to late next year, so close a deal before the prices creep up! Want to know more? Read Andrew Wilson's article in Sydney Morning Herald and Chris Vedelago's investor centre blog
By Martyne Ford -Sales Agent and Marketing Manager, Sydneylinks Real Estate E: martyne@sydneylinks.net
Friday, December 10, 2010
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