POP THE BUBBLY! It's a Buyer's Market, Not a Bubble!

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

INVESTORS DOMINATE as First Home Buyers Hibernate

WINTER TRENDS: Open inspection numbers continue to remain strong, particularly in Sydneylinks' area of investment property sales. However, the trend that emerged at the beginning of 2010 has compounded to the point where 90% of clients I meet are now investors. First home buyers have all but disappeared, and it saddens me to think that the "Great Australian Dream" of owning your own home is almost purely a Dream.

HIGHS & LOWS: Sydney's income-to-house-price ratio is 9 times the median income. No wonder loans for owner-occupied housing are at 9-year lows! This naturally puts more people in the market for rental property.

GROWING & SLOWING: Property prices continue growing but at a slowing rate. Considering this, owners of investment properties currently leased with good returns are in a great position to sell! Increased investor finance in the last 12 months proves investors are buying up big. 

APARTMENTS RISE HIGH: Good news has emerged for owners of high-rise apartments: In the past, houses have appreciated more than units but the tables have turned! RP Data-Rismark research proves it, but you may ask why? Perhaps it is because units are more affordable, or because they tend to be located close to cafes, shops, transport and work centres.

EASTERN SALES: Sustained rental and sale demand in Sydney's Eastern Suburbs makes it an appealing time to buy or sell investment property. If you are in the market to buy or sell contact me today. I look forward to being of assistance.

Click to link to more info statistics and research related to this article, as published by Sydney Morning Herald, RPData and Australian Bureau of Statistics.

By Martyne Ford -Sales Agent & Marketing Manager   martyne@sydneylinks.net