It's Time to Buy Everyone
The Telegraph reported this weekend that the last weekend of October saw the busiest auction day of the Spring selling season with 570 Properties going under the hammer at a 62% clearance rate. In my opinion this is a healthy and stable property market that is now leaning towards a buyers market, rather than a sellers.
They also said what I predicted a few months ago and that is we are now in a rental crisis with some rents going up as much as 30 percent in some suburbs over the last 12 months.
The vacancy rate is sitting at around 1.2 % which is ridiculously low and people are lining up out the door and offering over advertised rental prices trying to secure something before Christmas.
With still what I call low interest rates and rising rents, and plenty of stock, there's no doubt that this is the perfect time for investors to hit the ground running and secure a great buy in price on an investment property.
For owner occupiers from here until 1st of February is bargain time as you have motivated vendors, but most of all motivated agents that want to move their stock before the end of the year and go on holidays.
Taking in context the interest rate rise that happened on Melbourne cup day I believe it was well overdue to keep inflation in check and property prices under control. They knew they wouldn't have another chance to put them up until February, March next year so they acted now so that they can go on pause for what might be many months in 2011. We all despise the banks with their fat profits and greedy instincts, but at the end of the day they were some of the only banks in the world that stood strong in a GFC and enabled us to get through the worst global recession in 70 years. Please remember if you don't have strong banks, you don't have a strong economy. The main reason the USA is in such a mess is because their banks were fundamentally unsound and just shut up shop when it came to lending.
The other side is the reason our rates have been going up is because we have a healthy economy that can withstand some upward pressure on rates, and that is something to be proud of because many people worldwide have suffered extreme financial devastation throughout the last few years.
Happy house hunting everyone and remember you can always get some hot tips by going to my you tube channel and following my blog.
PK's Property Market Predictions for 2011
Heading into 2011, I am predicting a flat market for high end property, but for houses on the Lower North Shore and Upper North Shore up to $2 million and Eastern suburbs up to $2.5 million I believe the market will move upwards of 7% over 2011 in certain locations. Units up to $800,000 in Eastern Suburbs and Lower North Shore will perform well allowing investors to come back into the marketplace and take advantage of rising rents and low vacancy rates. Units in these areas will have approx capital gains of around 5 to 7% depending on supply.
The Inner West up to $1million in houses will also perform well, and depending upon stock levels should show gains of between 5and 10% throughout 2011. Units in these areas will be fairly stagnant but rents will be strong.
The Northern Beaches will see houses in The Freshwater, Balgowlah, Manly area have rises of around 5% to 7% for quality property up to $2million and Moving up the peninsula to Palm Beach a fairly flat market.
Overall it will be a fairly stable market with more competition assured in the banking space for 2011 keeping interest rates around about where they are now. This all makes it a nice market to buy and sell in without the huge rushes experienced in 2009 and early 2010.
Thanks for all your support this year, have a fantastic Christmas and New Year and I look forward to delivering some great honest independent property advice in 2011.
Amazing Property Buys
Mosman 3 bed unit art deco. Saved client $50,000
Cremorne Point house waterfront. Saved client $55,000
Paddington 3 Bed Terrace. Saved client $55,000
Sydney CBD 3 bed apartment amazing views
Kirribilli 3 bed townhouse great yard. Saved client over $100,000
Wollstonecraft 3 bed massive apartment
Clovelly 2 bed unit great block. Saved client $20,000
Coogee 2 bed unit great location. Saved client $30,000
Mosman large 2 bed unit. Saved client $20,000
Alexandria 2 bed unit. Saved client $25,000
Annandale 2 bed terrace renovated. Saved client $25,000
Epping House bought under client's reserve
North Balgowlah 3 bed home. Saved client $45,000
Clifton Gardens 5 bed home, water views. Saved client 13 times our fee
Bronte 4 bed home great location. Saved client $170,000
Seaforth 5 Bed home pool. Saved client $100,000
Mosman 2 bed unit new development. Saved client $20,000
Newtown 3 bed terrace. Saved client $35,000
Botany house. Saved client $70,000
Willoughby house. Saved client $100,000
Bondi Junction semi. Saved client $40,000
Mosman 2 bed unit renovated small block. Saved client $30,000
Hunters Hill 4 bed house. Purchased under extreme competition for under market value.
PK's Hot Tip
As an investor it is most important to follow a few important steps to ensure you make the most out of your property investment. Once you have exchanged a contract on a purchase be sure to get agreed in the terms and conditions that you are allowed to show prospective tenants through in the settlement period so that you can have a tenant from day 1 when you settle therefore you don't miss out on any rent. Also make sure that you acquire landlord insurance and get yourself a depreciation schedule for taxation purposes.
If you would like to receive PK's Sydney Property Market updates, hot investment tips and much more please sign up below or call one of our buyers agents today on (+61) 2 9904-3444 or email us so we can help you find your next dream home or investment property for the lowest possible purchase price.