I have been thinking for a while that Sydney should be the next market to bounce back. I am considering purchasing another investment property in Sydney inner west. Considering the current market, I see the following pros and cons:
Pros:
Falling interest rates. The financial market expects interest rates to drop by another percent, bringing mortgages rates down to 7%.
Tight rental market
Low supply of new housing
Cons:
Concern over economy in short term. While Australia may avoid a recession, Sydney is likely to be hardest hit by the downturn.
Tighter lending criteria restricting ability to borrow.
Overall, it looks like we're moving into a period of low supply & lower demand. Buying now seems speculative. Since the real estate market moves slowly, there is plenty of time of observe the market.
My inclination is to observe the market and look for signs of a recovery.
Anyone else willing to share their thinking?
Cheers,
Pros:
Falling interest rates. The financial market expects interest rates to drop by another percent, bringing mortgages rates down to 7%.
Tight rental market
Low supply of new housing
Cons:
Concern over economy in short term. While Australia may avoid a recession, Sydney is likely to be hardest hit by the downturn.
Tighter lending criteria restricting ability to borrow.
Overall, it looks like we're moving into a period of low supply & lower demand. Buying now seems speculative. Since the real estate market moves slowly, there is plenty of time of observe the market.
My inclination is to observe the market and look for signs of a recovery.
Anyone else willing to share their thinking?
Cheers,