March – April 2009
Welcome to House Search News March-April 2009
PROPERTY CYCLE OVERDRIVE?
First home buyers propping up the lower end of the housing market, cash-strapped executives taking losses on multi million dollar properties, rents rising, interest rates falling to record lows…. it all appears to be a property cycle in overdrive, or is it?
By it’s very nature, the property market is usually cyclical and we’re all familiar with the cliche “It doubles every 7-10 years”. Whilst that may have been the case in the past here in Australia, I believe caution is the key at the moment, with changing and unforseen global economic conditions putting a spanner in the “traditional” workings of the real estate cycle. Couple this with federal and state govt intervention and we have an artificial stimulus currently occuring, with many first home buyers anxious to retain the boost grant before it’s due to expire in June.
Buying well in any market is paramount, however, and home owners don’t necessarily time the market when they’re looking for their next home. They buy when they can afford it, and now may well represent one of those times in our cycle that purchasers look back and wish they had have bought in.
No matter what stage of the search you’re up to, or if you’re simply lack the time, energy and know-how in buying a property and want to ensure you’re not OVERPAYING, give us a call and we’d be happy to discuss how we can help.
House Search Australia
GOING ONCE GOING TWICE!
If you’re a nervous buyer and prefer to have an advocate bidding for you at your upcoming dream property auction, we offer a bidding option. Great for first buyers or those who don’t want emotion to run away with them on the day. This option also includes post-auction negotiations should the property be passed in. See our site under Option 3 for further details.
Quote of the month
“The real voyage of discovery consists not in seeking new landscapes, but in having new eyes”
Market Update – Sydney Property News
With 5 interest rate cuts since Sep 2008 and more likely in the coming months, it appears mortgage holders are the winners in today’s current economic climate. With the economy still in dire need of a further boost, another rate decrease may well be the antidote needed to stimulate Australians spending. Read more in the original SMH article here.
As Sydney housing median rents climbed by 18% over the Dec 07-08 year, it seems the rising rental market is impacting on both investors and home buyers, as the gap costs between renting vs buying narrow. With such exceptional rental growth continuing, it seems timely for financed investors to consider re-entering the market. RPData, Australia’s leading source of real estate data, outlines the changes in their latest Pulse Property update here.
Sydney is still, however, a tale of two cities right now, with the FHB market territory experiencing faster growth and price increases, whilst the higher end of town suffers from too much time on the market, and consequently large price drops. The median priced properties in most suburbs appear to be the ones that will weather the storm the best, as this is the price point at which the majority of buyers can afford.
The lighter side…
Breaking down RealEstateAd Speak
Cozy: so small the cat can’t even swing!
Convenient: main road position next to a 24hr bottle shop or supermarket.
Charming: old, unrenovated and it’s the best word we could come up with to avoid offending the owners!
Astute investor: any buyer with a pulse and a chequebook.