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

Remember.....Real Estate is not a 'Get Rich Quick" Scheme

 Our contemporary mindsets with the attention span adjusted to the length of a Twitter update, sees the idea of a quick "flip" as highly appealing. But the idea of "Buy Low.....Sell High" to make fast money does not always equate. Once you've paid the agent, solicitor, strata, government and conducted a quick makeover you may be disappointed at the end profit. Property investment requires time to see good capital gain.
You must also consider that with the advent of the internet, the last sold price of the property is at the fingertips of your potential buyer. So, if 3 months after purchase you are trying to sell the property for $100,000 more, prepare for buyer cynicism.
Even with renovations one cannot guarantee added value. Your dream design is not necessarily compatible with the market and even an experienced property investor can over-capitalise or simply miss the mark.
The key to rising value may not be found in a run-down "do-over" but rather to select property that has characteristics of enduring desirability - attractive views, quality design, well-conceived layout and of course, location, location,location.
This will ensure optimum long-term growth potential and in the short-term ensure the property is always rented at a great rate.
It's a Win-Win.

By Martyne Ford -Sales & Marketing Co-Ordinator  martyne@sydneylinks.net