For the first time in a long I'm starting to notice a lot of 'GOOD news and articles on regarding the property market. I came across this article on Australian Property Investor which was a good read. Ive posted the article for your reference.
As the first homebuyer incentives get set to wind down, mortgage brokers claim that investors are now ahead in the property stakes, according to news.com.au.
"People who were serious about getting the grant made sure they bought well ahead of June 30, when it was originally scheduled to expire," said Resi Home Loans head of consumer advocacy Lisa Montgomery.
"Now it's investors dominating business. Many of them are disillusioned with the stockmarket and trust only property to provide stable returns."
While property is a solid long-term investment, and investors are moving back into the market, investors are being warned not to rush in with the expectation of making a quick buck, said news.com.au.
While property prices in the first homebuyer range have risen due to government incentives, news.com.au said there was no guarantee that growth would continue when the grant ends later this year.
"This is no time to be buying property with a short-term outlook," said Yellow Brick Road chairman Mark Bouris,
"You should buy property only if you can afford to take a minimum five-year view. You should be thinking in terms of 10 to 15 years if possible, so you can ride out any market fluctuations."
And the importance of building in rate rises to mortgage repayments is crucial, as financial markets expect the cash rate will begin to rise early in 2010, and reach 3.4 per cent in 12 months.
Bouris said prospective landlords also have to remember that the property market works in cycles, so rent hikes won't be possible each year – especially if unemployment is on the rise.
But with rental shortages continuing, longer-term prospects remain positive.
http://www.apimagazine.com.au/api-online/news/2009/07/investors-primed-to-return
Thinking of buying or selling in Nedlands? Call me anytime.
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