rbaproperty.com.au

The Australian winter season has finished with strong buyer demand and a severe shortage of stock resulting in resilient property prices.

Property for Investing

I think Spring of 2009 may be the final opportunity for buyers to purchase in a economic climate that has been affected for two years by the global recession.
Property Guru John McGrath says I am still convinced that 2010 will be a strong growth year for property values, starting with well located quality homes between $1m to $3m and then moving north to the luxury home market in 2011.

With the planned reduction in the First Home Owners Grant Boost (FHOG) it is expected the properties in the price range upto $600k will have some let up in demand. The drop in the First Home buyers should be offset by property investors who will be attracted back into the market. With historic low interest rates and continued shortage of property construction (supply) property prices will hold up and increase into 2010.

RP Data (www.rpdata.com.au) reports a 5.7 per cent gain in Australian prestige property values from January to June alone. Buyers in the prestige sector have re-consolidated their positions and are heading into spring with money to spend in prestigious suburbs where prices have fallen 15 per cent or more.

Investment properties will bounce back strongly in 2010 as property investors re-enter the market. Good Investment Property demand will pick up as savvy investors realise that with rental returns of between 5% to 6% and interest rates below 6% it is really hard not to seriously look at investing in property.

During the past 12 months, we’ve seen some declines in median house prices in some of the best lifestyle locations. My top value suburbs are:

• Double Bay (-35 per cent)*
• North Avoca (-28 per cent)
• Bellevue Hill (-28 per cent)
• Palm Beach (-27 per cent)
• Seaforth (-26 per cent)

* 12 month price changes for houses; Source RP Data on 3 August 2009.

The best value locations for apartments are:

1. Ultimo (-43 per cent)*
2. Avoca Beach (-27 per cent)
3. Balmain East (-25 per cent)
4. Milsons Point (-22 per cent)
5. Mona Vale (-21 per cent)
   

* 12 month price changes for apartments; Source RP Data on 3 August 2009.

Property investors will have to ensure:

1. For financing investment properties ensure you have an experienced property investor who is a mortgage broker (www.rbamoney.com.au)

2. Investment properties for beginners can be a daunting task. Get informed and educated, read reports on- how to finance investment property and where is the best place to buy investment property (message me to get a free report). Check out investment property calculators to determine your budget and room for interest rates to move up.

3. Buying investment property is full of choices. Always search and look and keep looking until you find discount investment property. Property investment is fun and can become addictive.

If you have any questions on buying investment properties leave a message below.

Building Wealth with Property

Property Guru

Related articles by Zemanta

• Real Estate Entrepreneur Makes Over $323,000 In 59 Days (prweb.com)
• Preparing your personal finances for a recovery (telegraph.co.uk)