Is it a Time to Buy or Sell Properties?
John McGrath writes a well-crafted article for Switzer Daily wherein he dissects the movement of the real estate economy and throws light on how the market will trend in the year 2015. There are two categories of homeowners at the moment. The first kind is imagining a plateau ahead and is ready to sell its stocks. The second kind thinks that there may still be some time left before the slide and are hesitating to list just as yet.
Property market will become sedate from here
McGrath feels that we have had two brilliant years and things will become a little more sedate in 2015. It is hard to expect a growth as phenomenal as we have witnessed in 2013 and 2014. This said, the consistent clearance rate of 70% and above clearly indicates that our stocks are still being well absorbed and that demand is easily keeping pace with the supply.
Interest rates might fall further. While this may not be a great commentary on our times, it certainly gives us reason to amass more wealth in the real estate. Low interest rates have spawned the rejuvenation of the property market, after all, contests McGrath.
Unemployment and mortgage
In the year that is 2015 it will be wise to be a little circumspect. Carefully plan against unemployment and have an income protection strategy in place. Abstain from a free run of mortgage and you will be alright, says McGrath
You can read the original article here.
Interest rates were brought down in an effort to turn the focus of the economy from an ailing mining sector to the construction sector. While the move has certainly solved its purpose, there is no denying the inflationary pressure it might bring in time apart from the other economic backlashes (which McGrath hints towards when he says low interest rates are not good for an economy).
Yes, the low interest climate may mean we can safely pedal along in the property market accumulation world for some more time. If we understand that no market can carry the momentum like the one Sydney has had for more than a couple of years, we will be good. I feel it is still a time for buying. Properties in Sydney can give smart capital gains to sellers but at the same time they are sure to offer high capital growth to buyers, too. So, keep off the selling mode for sometime to come and accumulate properties till it is a good time to do so.
You may need a seasoned buyer’s agent to go through the grind of the property market.If you have plans to purchase, get in touch with me today. I will be more than glad to help.