State Of The Market
The market is beginning to stabilise. There are sensational properties in the market place that should produce a great long term investment. It is a matter of knowing where to look and when to say NO!
You can sell a property and make a very good return if you watch how you market, and how you manage the campaign and know when to say NO!
Buying property and holding it, is a brilliant long term money making strategy. The trick to capitalising on your investment is knowing when to say YES!!
We can see that the clearance rates are moving slowly from the 70 percentiles and into the high 60’s. This last occurred in late 2010 but at that stage the cash rate was 4.5% and lifted to 4.75% with banks indicatively lending at discounted home owner rates at around 7.15%. Official rates sat until Nov 2011 when finally they were dropped 25 basis points after both mining businesses and housing prices had stalled for nearly a year.
Clearance rates dropped throughout 2011 into the high 50’s and stayed there until early 2012. With the advent of further interest rate drops in May and June the clearance rates hovered around the low 60’s and then after 2 further interest rate cuts the clearance rates lifted into the 70’s and prices, which stagnated (not dropped) took off in 2013 and 2014, when we again saw 70% plus clearance rates.
As the clearance rates have dropped this time, we are already in a very low interest rate environment, with no uptick on the radar. I think there will be a very short stabilisation in price point, but it will take off again a lot quicker than 2011/2012.
Many people were slow in the uptake of buying bargains, waiting until they saw the lift in clearance rates and the market obviously gaining momentum.
Welcome back to 2013
This year has started strong for our team,
Leasing and managing properties has been very busy.
Courtney and her team worked through with great success.
All open for inspections were full on through the Christmas break, even on 40 degree days.
Many properties are renting out straight away, others just a short time after listing them.
Closer to the CBD, units have been very popular with young couples and friends needing to get into these units and apartments over there break.
Period homes and townhouses with in the 5 – 15km radius are being leased straight away.
Houses in the outer areas also very popular, we cannot get enough 4 bedroom homes on our books, as soon as we open them we get multiple applications. (Great for our landlords).
Families are all hoping to get into their new properties prior to the new school term begins.
Homes and units that are updated, and have neat and low maintenance outdoor living areas are the more popular properties.
If you are looking to increase your portfolio or looking to buy an investment property our team of advocates can assist you 03 9523 1054.
JPP Property Management offer a boutique service, fulfilling all investors needs and more while ensuring there tenants are cared for.
Call Courtney on 9523 1054 and talk to her about how she can assist you with all your property management needs.