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Monday July 21st
For the fourth weekend in a row I have been to auctions with more than three
people bidding at properties on the market. There is a strong return of both
investors and owner occupiers to the market place. Some properties purchased
over the weekend sold at prices that may not have been attained in December last
year. If we look at the media comment from most agents they are saying the same
thing.
The market is heating up again and it is due to two major factors. Firstly,
good property has a habit of always going up over the long term. Even with the
"drop" in the market this year most good properties will still show 12 month
increases above 10%. The March 2008 Melbourne Median price still showed a rise
of 14.4% for the year (REIV Statistics). Can the Stock Market show this?
Secondly, good property is scarce. Supply and demand factors are way out of
sync. Many people have been putting off their house purchase for the past six
months, to see what would happen. Now they are in a position where they must buy
or rent and both of these are daunting tasks. If stock doesn't increase by
October, to quote Paul Braddock, ANZ Banks chief economist "there will be the
mother of all booms in the property market"
It is not easy to find good property, and when you do you have to be prepared
to "fight" for it to a certain point. You need to set limits, but you also have
to be realistic. Good property, will always be good property and whilst everyone
thinks the market is in the doldrums, smart people are buying these good
properties.
Always do your research, always have a plan. Use a professional Real Estate
Agent that is working specifically for you. Unfortunately, your accountant, your
loan broker, your valuer or your best mate will not be able to assess and
negotiate as well as a seasoned professional Real Estate Agent. Buying property
in this market without using a Buyer Advocate is fraught with danger. You need
to know what to buy, when to buy and how much to pay. You need to be able to
negotiate with a seasoned professional.
Get an Expert on your side
Ian James
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