National averages give you a decent impression of how things are going over the national scene. Yet, investors, who are worth their salt, will tell you why it may not be enough. You need to have a tight grip over the local dynamics before you think of property investment. Aren’t the reasons simple enough?
Tracey's Property News
Foreseeing 2015 Property Market Trends
In an article for the Switzer Daily, John McGrath expresses his lack of bullishness about Sydney’s property market prospects in 2015. He does not expect the market to take a reverse turn but certainly anticipates a mellow down in prices.
Demand Outpacing Supply in Sydney
An article on the website Your Investment Property suggests that vacancy rates are too low and that supply in Sydney is not keeping up with the force of demand made by investors.
High-end Properties May Be An Unwise Purchase
Capital cities across Australia are witnessing a reversal in fortunes of rental yield and this may be ample reason why investors should look warily at certain price brackets from here on. Those who have the dough to carry the deals look for the really expensive properties, often missing a crucial component called Due Diligence. If only they would research, they would find that the performance of some of these high-end properties might be nothing but questionable.
Reserve Bank Governor Plays Down Cash Rate Cut
In an article for the website abc.net.au, Michael Janda sheds light on how the Reserve Bank Governor Glenn Stevens chose to address a few key financial aspects. He suggested that the dollar was running pretty close to the intrinsic value (based on economic fundamentals) but some adjustments still required being made.
FHBs Need To Work On Habits
In an article for the website The Adviser, Nick Bendel talks about the inclinations towards spending and borrowing manifest by the First Home Buyers. FHBs are going the ‘personal loans’ and ‘credit card’ way to conjure up the upfront costs.
Already, the average loan is high enough and if FHBs add personal loans and credit cards to the game, they are only going to make things tougher for themselves, asserts Bendel. It is no hidden fact that FHBs are having a tough time; what with them being elbowed out of the market by the investors and owner-occupiers. They also need to tone down their spending habits because at the moment they are spending a considerable part of their savings.
You can read the original article here.
