I am no economist PM, however my intuition and gut feel (based on what I see, hear and know of that area.............and I don't profess to know it all.......where is Harris
) is that with the purported aggressiveness that the RBA is hinting it will raise rates, I cannot see prices moving too much further north (for now)
Will they soften or track sideways or plummet? I don't know. I doubt they will plummet; They may come off 5-10 % and even if they tracked sideways, there will be more timely pickings IMO from OO distress and with softer yields more balanced and restrained investor activity in the short term.
I reckon, as prospective buyers, we will have more time to transact and not be fearful of "missing out" as some properties are taken off the market very shortly after listing by over-exuberant FHB to time their grant in the recent past and investors who feel they may miss out.
For the record, I actually put my foot on the next door property to mine back in March this year and eventually rescinded the contract due to
SIGNIFICANT building faults. Whilst the intention was to amalgamate the sites, it was handy to have but not imperative. Mine is the corner so whilst it was a nice adjunct piece of dirt, I was not desperate to furnish the required (and fairly immediate) repairs/remedies that equated to approx two years rent
as this was a super fund purchase and I was not to develop them for at least 10 years.
Having let it go, in April another in Stanley Street (which is gentrifying) caught my eye.........that one I missed. I forget the number however it was 650 sq m (sold for a pittance of 260 K only 7 months ago) and was more than rentable with a near new colorbond roof...........it is now ground zero. At 130,000 per site for two townies, whoever bought that has done well.
My opinion (and it is only my opinion) is that the air from that balloon will soon escape and there will be more leisurely pickings.
Pieman, I am also waiting for rates to rise.....I'd be happy for 0.5 % before Christmas, however even if not, by May-June next year we will have a cash rate in the mid four's I reckon...........eyes wide open and be ready to pounce only when the deal ticks the investor's boxes and suits their pockets. I am also looking for another multi, however in different areas.
Happy hunting folks
Harris where are you?
.....your thoughts please.