Year of the investor: 2012
Low vacancy rates, possibly interest cuts and a shaky share market will make 2012 the year of the property investor, according to Raine & Horne.
The residential real estate market will see investors being the first to move on inner ring suburbs around capitals next year, Raine & Horne CEO Angus Raine said.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
"Clearly, additional interest rate cuts will drive more investor money into bricks and mortar, but an easing in monetary policy also denotes an economy that is not creating enough jobs or growth.
“Also memories of the GFC are still short, so we don’t expect an investor stampede in 2012, rather it will be more like a slow increase as savvy investors look for quality, well-located properties with long term growth and income prospects,” Mr Raine said.
The price of property will be a significant driver he said, with Mr Raine predicting the $600,000 and below market will attract attention.
“We also expect that investment activity will start in inner ring suburbs such as Bondi, Newtown and Neutral Bay in Sydney, as well as New Farm in Brisbane, and North Perth in the WA capital – and gradually spread to middle ring suburbs later in the year,” he said.
Investors already constitute up to half of Raine & Horne enquiries.