W
WebBoard
Guest
From: Jim Kouta
There are three crucial factors one has to consider when buying into Real Estate NOW, especially Sydney\Melbourne 8km radius around the city.
1. Owner\occupiers
2. Investors
3. Renters
1. Owner\occupiers have bought forward their purchase due to lower interest rates, as a result this has inflated prices.
2. Investors have moved out of shares in droves and put their money into property, as a result this has inflated prices.
3. Renters have also bought forward their purchase due to the Government grants, as a result this has inflated prices.
As you can see, prices have escalated almost 100% in some areas. So even though it's affordable now, even a slight interest rate increase will deter many buyers in the future. The Government Grant won't last forever and investors will turn back to shares in the next year or so once they realise creating wealth through property takes a VERY LONG TIME. Most people don't want to enjoy life at 65 when gains are realised. Given that prices have increased so much, it's inevitable there will be a correction, how big, nobody really knows. But remember, the bigger the boom, the bigger the bust.
Regards,
Jimbo.
There are three crucial factors one has to consider when buying into Real Estate NOW, especially Sydney\Melbourne 8km radius around the city.
1. Owner\occupiers
2. Investors
3. Renters
1. Owner\occupiers have bought forward their purchase due to lower interest rates, as a result this has inflated prices.
2. Investors have moved out of shares in droves and put their money into property, as a result this has inflated prices.
3. Renters have also bought forward their purchase due to the Government grants, as a result this has inflated prices.
As you can see, prices have escalated almost 100% in some areas. So even though it's affordable now, even a slight interest rate increase will deter many buyers in the future. The Government Grant won't last forever and investors will turn back to shares in the next year or so once they realise creating wealth through property takes a VERY LONG TIME. Most people don't want to enjoy life at 65 when gains are realised. Given that prices have increased so much, it's inevitable there will be a correction, how big, nobody really knows. But remember, the bigger the boom, the bigger the bust.
Regards,
Jimbo.
Last edited by a moderator:
