Hi everyone looks like those interest rate cuts are starting to flush through the system, finally giving the real estate market a well needed boost of enthusiasm. Auction clearance rates are now over 60% and people are really starting to see the value in buying at the bottom end of the market, ready to capitalise on the expected growth over the coming years.
Please note everyone: Agents are reporting that listings are the lowest they have seen in 7 years, and that buyer numbers are at their highest in two years.
We have definitely moved into a sellers market for the price ranges of $400,000 to $1.5 Million dollars but are still in a buyer's market in most cases above that.
Investment properties are still showing great returns, and in some cases renting within a week which is making it look a lot more attractive for investors having their money in the property market rather than in the bank, when interest rates are this low.
And that is one of the main reasons vendors are not selling their investment properties because they are showing good returns and now, capital growth.
These are some of the purchases we have made, and it's only half way through the month, with many more we can't show you because of confidentiality reasons, and around another 20 sales on the way.
Buyers please understand that from the 15th November it is bargain time until 1st February with agents and vendors extremely motivated to sell before the end of the year. So don't leave it until next year to sign up for our services as we are hunting down these bargains right now.
Recent PK Property Purchases
55 Cowles Road Mosman purchased $1,875,000 saved $25,000
53 Benelong Street Cremorne purchased $2,200,000 saved $100,000
45 Greville street Clovelly purchased $2,300,000 saved $75,000
131 Highfield Road Lindfield purchased $1,410,000 saved $90,000
62 Spencer Road Killara purchased $1,335,000 saved $65,000
3/3 Florence street Neutral Bay Purchased $735,000 saved $25,000
Unit 17/80 Murdoch Street Cremorne purchased $965,000 saved $35,000
14/1 Hill Street Marrickville purchased $488,000 saved $11,000
3 Embers Way Auburn purchased $400,000 saved $10,000
6/25 Parraween street Cremorne which was silently listed not yet on the market purchased for $700,000 saved $25,000 rented first week for $695.00 5.1 per cent return
23/40-42 Brookvale Ave Brookvale Purchased $519,000 saved $11,000 rented for $560 per week in the first week 5.6 per cent return
30/23 Iluka Street Manly purchased $646,000 saved $29,000 will rent for $630 per week estimated return 5.0 per cent return
12 Neville street Marrickville Purchased $700,000 saved $40,000
29/747 Old South Head Road Vaucluse Purchased $505,000 saving $15,000
31/1 Tewkesbury Ave Darlinghurst purchased $805,000 saved $15,000
9/254 Condamine Street Manly purchased $569,000 saved $18,000
PK's Property Market Predictions
With predictions of the cash rate hitting 3% very shortly, the same level which it was during the GFC, most economists and myself, are predicting a property revival and some predicting a property boom throughout 2013 and 2014 with increases in the Sydney property market of around 7 to 9 %.
Not only are interest rates low, but they are predicted to stay low for a longer than normal period of time. Sure unemployment is creeping up a little, but at these levels there is nothing really to worry about.
The fact of the matter is, agents are reporting everything they are getting their hands on they are selling, the only problem is they can't get their hands on enough stock, which now creates a supply and demand problem which will force prices up. Since the beginning of the year certain segments of the property market have already moved 5% to 7% where others have stayed stagnant.
PK's Hot Tip
If you are looking at buying an investment property in your self managed super fund, or outside your fund for up to $700,000, or looking to upgrade your family home there is no better time to do it than now. This property market is moving, and will continue to move over the next 2 to 3 years, so jump on the capital gain train everyone and enjoy the ride.
P.S. This will be the last article for 2012 so thanks for your support and I wish you and your families an amazing xmas and prosperous new year.
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