Prices flat but buying opportunity abounds
Lacklustre consumer confidence is creating exceptional buying opportunities in some parts of the country, according to Blue Wealth Property.
While current market sentiment suggests property prices will be relatively stagnant in 2011 in some parts of Australia, a flat market actually puts pressure on the rental market as people hold off buying and continue renting, Blue Wealth CEO Dr Tony Hayek said.
This is good news for investors, as it drives up rents and reduces the cost of holding investment properties, Dr Hayek said.
“We may not have the hype and excitement of a growing market, but what we do have is a perfect environment to create outstanding buying opportunities in some areas of Australia.
“In fact, right now is the best time in the property cycle to buy, especially when buying off-the-plan.”
According to Dr Hayek, during times of waving consumer sentiment, developers need to fight even harder for sales. This means more attractive incentives for investors to negotiate price reductions, stamp duty incentives, rental guarantees and reduced deposits.
“In times of uncertainty, people are looking for security, but may be fearful or confused to act due to negative media bias or confusion clouding their decisions,” said Dr Hayek.
“The Australian property market fundamentals show that on the whole, population growth remains strong, household sizes are shrinking, interest rates are stable and in line with long term averages, housing approvals are low and unemployment low; signifying a long-term promising economic outlook.”
“The fundamental property message to investors right now is to be educated and keep it simple. Look for good size apartments with low risk, in capital city or large regional centres, close to major amenities and transport.”