Now is a great time to buy

E

eeew

Many reports such as this one
http://au.finance.yahoo.com/news/Home-values-continue-flat-run-abc-1881319602.html?x=0

...showing that home prices are flat, the supply of houses out there gives prospective buyers room to choose and negotiate.

Buy in a low market, now is the time to buy. Rates look steady ( wont increase for a couple of months, wont decrease either).

I also dont think the market will drop any further (all this talk about a bubble bursting and a crash ensuing is pure speculation). The long term outlook for real estate prices are very favourable. Only short term corrections will happen as we are seeing now.

Stick to the tried and true tenets of real estate: location, size, features,etc and you will be fine in the long term.

I know i will look at buying. Some attractive prices to be had out there. Quite a bit of choice as well.
 
eeew said:
I know i will look at buying. Some attractive prices to be had out there. Quite a bit of choice as well.
Click to expand...
Do you mind sharing with us where you're looking and what you see?
I need to add 1 or 2 to my portfolio
cheers
 
Yields are too poor to justify buying in a stagnant market. With a glut of properties on the market, and little buyer interest, what basis do you have for predicting price growth? And will this growth be nationwide, or a you referring to specific regions?
 
Fifth said:
Yields are too poor to justify buying in a stagnant market. With a glut of properties on the market, and little buyer interest, what basis do you have for predicting price growth? And will this growth be nationwide, or a you referring to specific regions?
Click to expand...

Long term drivers of capital growth:

1. Population growth (mostly in Melbourne CBD and surrounds)
High rates of population growth (especially younger demographics) drive up demand for inner city dwellings, especially if they are close to universities, medical facilities, and most of all, jobs.
2. High Commodity Prices ( e.g. oil, base metals etc) driving up prices in the CBD and surrounds. One reason why high base metal prices contribute to CG is that it becomes more expensive for developers to build( and they wont if they cant make a good buck out of it), thus limiting supply.
3. Ageing Demographics.
Retirees will me more inclined to go for a sea change/country areas. Some will be empty nesters and opt for inner city dwellings, especially business owners/executives in the CBD's.
4. Increasing foreign investment
This factor brings in jobs, and thus increases demand for dwellings.
5. Competition aint doing well elsewhere.
Competition being alternatives houses in 'developed countries' such as USA, europe etc...they are still suffering. House prices there may still go further down due to massive oversupply built during boom years.
6. Limited supply- it may not seem like it ( with high prices and all), but demand still outpaces supply- hence the reason for being so high.
7. Safety in real estate versus alternative investments ( e.g. share markets are more volatile than the australian housign market- e.g. uprising againt a Middle east/North africa dic(k)tator can have ramifications on a vast number of shares. Very tough to predict what will happen in such conditions.)
8. The Chindia factor- China and India. Two huge countries that buy most of what we pull from the ground...give us so much wealth it aint funny.
They are both posting (and expected to post in the future) solid growth rates.

The list goes on and on...

All the above are mentioned in various business newswires/ market reports over the last 2 months or so. They all seem to sing a similar song, pointing to more fact than speculation as they are based on not just reporting, but some stats and number crunching behind those stats.

I cant tell you whether this growth will be nationwide or region specific. Just stick to the fundamentals of RE investing ( location, size, etc) independant of region and i think you should be good for the long term.
 
Fifth said:
Yields are too poor to justify buying in a stagnant market. With a glut of properties on the market, and little buyer interest, what basis do you have for predicting price growth? And will this growth be nationwide, or a you referring to specific regions?
Click to expand...


I don't think it's over the top to think of property as a long term investment and in the long run investors will be better off buying in a flat market and riding things out until the market hots up again.
I mean , from a long term perspective how is it smarter to buy in a frenzied market and pay top dollar?
One further point thats jumping out at me at the moment is that because there are plenty of properties advertised I can afford to be my pedantic self when choosing which ones I purchase , so again this can only be a further benefit to capital growth in the long term.
 
BV said:
Do you mind sharing with us where you're looking and what you see?
I need to add 1 or 2 to my portfolio
cheers
Click to expand...

Medium term: Southeast queensland is attractive at the moment. Low house prices, but high rents. Their recent floods ensured that; taking out supply, whilst flooding ( no pun here) the area with contractors ( read: demand) to rebuild. Mostly contract based, demand will eventually go.

Long term: CBD's of Melbourne and Sydney.
Simply cant beat whats on offer in these two cities- jobs galore- type, size, money, variety etc.... can be who you want to be in these areas. That freedom is exhillarating. People always want to be where the action is. Id prefer Melbourne over Sydney as melbourne is starting on a cheaper base, as well as expected to post stronger demand than sydney. The stigma ( rightly or wrongly) is that sydney is, and has been for some time, over-priced for what you are getting. Better deals in melbourne.

Short term: RE aint suited for short term. The casino is. I suggest roulette. Can easilly double your money in less than 2 minutes.
 
eeew said:
Long term: CBD's of Melbourne and Sydney.
Simply cant beat whats on offer in these two cities- jobs galore- type, size, money, variety etc.... can be who you want to be in these areas. That freedom is exhillarating. People always want to be where the action is. Id prefer Melbourne over Sydney as melbourne is starting on a cheaper base, as well as expected to post stronger demand than sydney. The stigma ( rightly or wrongly) is that sydney is, and has been for some time, over-priced for what you are getting. Better deals in melbourne.
Click to expand...
Completely disagree. Wouldn't touch Melbourne with a barge pole. I'd buy in some parts of Sydney in a heartbeat.
 
I've recently bought two units in Townsville CBD and hoping for it to take off in the next 4 years.

I still like Melton West, Frankston and Mornington Peninsula; however, Sydney is very attractive in the South West and the zero stamp duty for new properties is enticing.

Reserved to the sidelines until next year so we will see what happens till then!
 
I think its a good time to buy, properties for sale are on the market longer. Therefore you will have more room for negotiations. I too have also been looking for my next purchase.
 
eeew said:
Many reports such as this one
http://au.finance.yahoo.com/news/Home-values-continue-flat-run-abc-1881319602.html?x=0

...showing that home prices are flat, the supply of houses out there gives prospective buyers room to choose and negotiate.

Buy in a low market, now is the time to buy. Rates look steady ( wont increase for a couple of months, wont decrease either).

I also dont think the market will drop any further (all this talk about a bubble bursting and a crash ensuing is pure speculation). The long term outlook for real estate prices are very favourable. Only short term corrections will happen as we are seeing now.

Stick to the tried and true tenets of real estate: location, size, features,etc and you will be fine in the long term.

I know i will look at buying. Some attractive prices to be had out there. Quite a bit of choice as well.
Click to expand...


Yet another report stating similar things...low building approvals...leading to limited stock. This will lead to higher prices ( med to long term) with the aforementioned factors outwieghing the supply.

In light of all this, i would look to hold any current properties and look to add to the portfolio.
 
Depends on the individual. In my case it’s not a good time to buy as my cash position is pretty crap (CF and liquid capital) most likely I’ll be holding off for this whole year, however it doesn’t stop me from looking and experimenting with figures, if the numbers stack up I might leverage up some more. GO GO capitalism!
 
zed_kid said:
Depends on the individual. In my case it’s not a good time to buy as my cash position is pretty crap (CF and liquid capital) most likely I’ll be holding off for this whole year, however it doesn’t stop me from looking and experimenting with figures, if the numbers stack up I might leverage up some more. GO GO capitalism!
Click to expand...

yes, you are right. It certainly does depend on individual circumstances. In my earlier threads, i assumed that people had the money to buy/capacity to borrow to buy. That is not always the case, i understand.

What i perhaps should have said more clearly is that the best time to buy/sell is when it suits the person. Dont worry too much about short term corrections or price rises; they are all short term and inherent in any investment market.
Focus on med-long term, buy n hold strategy and you should be fine. If you think the long term projections for real estate are positive, and it suits you at this time, then id buy.
 
eeew said:
I know i will look at buying. Some attractive prices to be had out there. Quite a bit of choice as well.
Click to expand...

eeew said:
6. Limited supply- it may not seem like it ( with high prices and all), but demand still outpaces supply- hence the reason for being so high.
Click to expand...

So what is the market like then?? Is there 'quite a bit of choice' or a 'limited supply' ??

Anyone who trots out the old housing shortage chestnut really doesnt know what they are talking about or work for the REIV.
 
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