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HI, I am a recent grad with 2.5 years experience. Just have a bit of saving and ready to invest in the property market. The main driver is for capital gain and tax deduction. I am thinking of buying townhouse or house for investment in brissy. As I read some magazine saying the property is at peak level and the price may drop down within this or next year. Do you think it’s the right time to buy now or should i wait couple of months or a year. I know that house investing is for long term but I just want to ascertain that it is the appropriate time to buy now or should i wait (till interest fall down or price drop a bit ??) . Your expert opinion is appreciated..[specs]
Regards
AldieHi Aldie,
The data from ‘Herron Todd White’ independant valuers points to the Brisbane market bottoming out. From recent anecdotal evidence I believe it’s now starting to rise (and this is the logical progression in the cycle). Rents have recently risen dramatically (especially for houses) and now yields are more attractive for the investor so demand is higher and supply is drying up again.
Vacancy rates are very low and I had recently had people willing to pay $30 more per week to rent my house in Mango Hill (Brisbane suburb).
I believe that some suburbs of Brisbane are experiencing a mini-boom. This could soon be dampened by an interest rate rise (and there a strong reasons for this to happen). Just looking at ‘Todays Tip’ on the sidebar says- “Variable home loan interest rates peaked at 17% in March 1990” So if I was buying something now I would lock in for 5 years because rates are still historically low around the 7% mark.
So all in all my personal belief is that it is a good time to invest in Brisbane. You can play around for ages trying to find the right time to get in the market but the reality is ‘you have to BE IN the market to be able to make anything out of the market’ and if you get paralysis by analysis you will may never get IN the market.
Todd Burns
http://www.freepropertyhelp.com.au
