Welcome to House Search News May-June 2009
A HOUSING MARKET IN UNCERTAIN TIMES
Whilst first home buyers are still taking advantage of the extended grant boosts around Australia, due to be phased out gradually to the end of 2009, investor interest has also picked up, with some viewing the current historically low interest rates and softening prices as the right time to enter the housing market.
With rental yields still holding steady across Sydney (latest vacancy rates released by REINSW for May 2009 show an average rate of just 1.0% across Sydney) it may well indicate a new beginning for investors who are looking to minimise cashflow and secure a property in Australia’s most internationally recognised city.
The downside, naturally, is the current economic climate, the full effects of which we may not yet have witnessed, if unemployment rates continue to climb. Tightening credit is also another factor, which will serve to limit the number of home buyers entering the market, thus continuing the demand for good rental properties. Companies like Residex (March Quarterly Report 2009) believe that rentals will increase significantly over the next decade as house prices basically keep pace with inflation. Their predictions are for better than 7% over the long term, which is very promising news for investors.
The key to investing is ideally to stick to the properties that the majority of tenants and home buyers can afford (median prices provide an ideal starting point here), ensure it’s well positioned to required amenities and is in a well maintained condition that won’t hurt the cashflow situation. Most investors who use our services prefer brick dwellings, that have been well maintained (or renovated) are easy walking distance to transport routes and other attractive amenities (shops, parks etc) and attractive to both tenants and home buyers (for future resale). It’s vital that the demographics of the area are taken into consideration, so that you’re pitching to the largest key market when it comes time to rent or sell. For Sydney, this type of property includes mainly units, as our naturally built up city and affordability means that the majority of FHB’s tend to select medium density dwellings for their first purchases.
Having a systemised approach to purchasing is vital, if your aim is to saturate the current marketplace as thoroughly as possible and ensure you purchase for the very best price. This can also include canvassing of particular areas of interest, as well as maintaining regular contact with selling agents in the area. Having a buyers agent on your side can make a huge difference in results, and if you decide to hire an advocate to assist, we warmly welcome your questions and enquiries. To date, we have had very satisfied clients from all walks of life, including young first home buyers through to overseas investors and high end home buyer purchasers. Please read our testimonials for recent comments and we look forward to hearing from you in the near future.
Jacque Parker Director House Search Australia