It’s hitting the time in the cycle when property buying opportunities are plenty and some of the best real estate is trickling onto the market at discounted prices.
Respected “money man” Paul Clitheroe, wrote in the Sunday Telegraph that he believes now is the right time to buy. He cited prices dropping by around $60,000 in good Sydney suburbs, rental increases of up to 17.8%, vacancy rates at 1.2%, the first home owner grant and low interest rates.
Does this mean that prices will not fall in 2009? The answer to this is no. The property market will see some downward pressure in different suburbs throughout 2009. The trick is buying the right type of property in a good suburb.
Net immigration will continue to put pressure on prices as demand for housing is high. ANZ recently forecast a shortage of housing stock in the second half of 2010 of more than 250,000 dwellings.
The secret is to buy well – in other words buy something that is unique or special or something that is in demand from would be renters. There are wonderful opportunities for excellent buying, especially throughout Sydney and Melbourne.
Don’t miss next week’s article: Red hot suburbs to buy property at all price levels.