I am quite happy with the recent surge in first home buyer (FHB) involvement in the Australian property market. They have laid low for a long time now but in the last three months or so, there has been a 50% increase in their flock. Petra Sprekos for the Real Estate View observes the trend.
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What’s Happening to Sydney Home Prices?
Pete Wargent finds RP Data’s Daily Home Value Index ‘entertaining as always” and he believes that the capital cities are showing really promising signs, just the information that RP Data yields. In an article for the Street News, he talks about the Sydney property market in high regard.
Sydney auction clearance rates continue to impress
Sydney’s auction clearance rates continue to impress. The capital city has posted a figure of 86.1% for the third weekend of September. Especially impressive is the figure for the Sydney Inner West- a mammoth 95% clearance rate, reports an article on Your Investment Property.
The western suburbs are doing almost as well though the auction numbers aren’t that high there. Also, 91% clearance rate for the Upper North Shore was a tad higher than 84% recorded by Canterbury and Southern Sydney. For records, Northwest has clocked a tidy figure of 81% too.
You can read the original article here.
How close to 100% do you think Sydney’s clearance rates can reach, knowing that there is nothing called a 100% clearance rate?
Rise In Population May Outsmart Sydney’s Housing Predictions
In an article I read on The Advisor, I found that in 20 years to come Sydney may need 100,000 more homes than previously predicted. This vindicates my conviction that 50,000 (stipulated some time ago) was a really conservative figure.
Population Growth To Arrest The ‘McMansion’ Syndrome
Mid-sized, medium to high density dwellings are likely to be ideal investments today. Investing in Mcmansions may not be a sound idea anymore, says George Raptis in an article for the Property Update.
Baby Boomers Invading The FHB Market With SMSFs
The generation closing on retirement (or retired) is making rapid inroads into the First Home Buyer Market. Their self-managed super fund is proving to be of great assistance in this regard. Yeah! I would any day lay a bet on that kind of fund getting the better of paltry resources that first home buyers have (despite the Grants). Peter Sarmas for the StreetNews reports that SMSF-aided investors have grown double-fold whereas FHB numbers have come down by half since last year.
Investors from the generation of baby boomers are a strong presence at the auctions. Buoyed by low interest rates, they are easily outbidding the first home buyers.
The value of residences in capital cities have grown by nearly 7% since the trough they hit in May 2012. This is also a trigger for the baby boomer generation which has enough money stacked up their sleeve.
You can read the full article here.
Are you investing in some equity release product (reverse mortgage and their likes)?
