When to buy? So many questions...

[lostis]

With such varied opinions on the GFC and where the economy is heading it is hard to gauge when to buy.

FHOGs and low interest rates are increasing the purchasing power and affordability of the lower end of the market and many different sources are establishing this through the amount of First Home Buyers running to the market.

Prices in the lower end is raising quite rapidly with inexperienced buyers basicly throwing money at vendors.

But even with all this spending there are opinions that the GFC still hasn't fully hit Australian shores and more unemployment is to follow.

How are we going to see this effect in the Property Market if unemployment continues? I can imagine the Mid to Higher end will drop further but will this in turn increase or decrease the amount of buyers into the lower end?

Which classes are going to be affected most from now, blue collared workers or white collared workers? This would obviously have a direct affect on who is buying and where people are buying right?

 

[Jacque]

Hi Lostis

Don't overanalyse too much- you'll do your head in
Best time to buy (esp IP's) if when you can afford it, your cashflow is good and the yield makes sense.

 

[manny]

Hi Lostis,

as per Jacque's you buy when u can afford to buy, however given the current climate (property's experiencing very little growth in most areas over the last year or two & some even going backwards), keep your eyes open as opportunities will arise & is a buyer's market... The main thing is to know your areas, prices & don't be scared to make a low ball offer... Don't let agent intimidate you (as they often do try this tactic to make you increase your first offer before submitting to the vendor)... Good luck with everything...

Cheers,

Manny.

 

[BV]

Which classes are going to be affected most from now, blue collared workers or white collared workers? This would obviously have a direct affect on who is buying and where people are buying right?

Lostis
When there is no work whole sections and even companies can shut down.
At my work we lost over 30 people in 2 days and they ranged from trades people to managers and accountants.

There is no reason to panic, the same number of positions open up elsewhere as other types of businesses get busier.

I can imagine bradford batts will be getting ready to open up a few more production plants to cope with the sudden increase in demand for insulating materials. It could be time to check out the CSR shares...