Hi folks,
Another beginner question. Now that the property market is booming, this means that property prices are high and interests rates are low. But if the market is bad, then the property prices would be low but the interests would be high. So does this mean that it suits only investers with loads of capital? Is that why they say a bad market is good for investers (though only those with high capital.)
Patrick Raj
In some ways it is irrelevant wether a market is booming or busting. Those who have the knowledge will make money regardless.
Saying that though, a down market is when investors really start to make money. Buyers who are desperate are more willing to go along with concepts such as vendor finace, or willing to drop the price way down (so that you can still postitive gear even woth the higher interest rates).
Also with a bust market their are more potential renters (as those who cannot keep up withtheir mortgages are forced to sell).
Rgds.
Lucifer_au
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