Australian Property Market – To Invest or Not to Invest

As 2008 starts to draw to end, it is a good time to reflect on the year that it has been. This year has seen so much change in both Real Estate and the economy as whole, both in Australia and around the world. Australians have been scared off investments, and understandably so with the share market falling to all time lows, and property seeing slight declines.

There is no disputing that a lot of Australians are doing it tough. With living expenses on the rise, and unemployment growing – this is not going to be a good Christmas for a lot of families. Putting the doom and gloom aside, there is a lot to look forward to in 2009 and beyond! With several Government initiatives and the Reserve Bank of Australia slashing interest rates, the outlook is quite exciting for the astute investor.

Interest rates in Australia have dominated the headlines over the past 3-4 months and are now near their all time low. The RBA has cut rates aggressively and look continue to do so into 2009. Economists are predicting that the cash rate could fall below 3% in Australia, and could go to 0% in the US who is now officially in Recession. The good news here is that it has never been cheaper to take out a Housing Loan. With most Banks charging rates around the 6% mark – loan repayments are now quite affordable.

The Federal Government also made drastic increases to the First Homeowner’s Grant to assist young Australian’s in buying their first home. The increased grant and low lending costs is sure to be more than enough to entice many young Australian’s out into the property market in the near future. This will increase competition in the property market – eventually pushing house prices up.

Australian’s will also be looking to the property market in 2009 to help re-coup some of their stock market losses of 2008. We have all felt the fall of thestock market this year, whether it is through shares directly or our Superannuation. Economists are predicting investors will look to the safety of bricks and mortar and invest in Real Estate after have being burnt in the Share market. Again, more Australian’s in the property market looks set to push prices up.

As sad as it is, many Australian’s will not be having a happy Christmas this year. With the cost of living and unemployment both increasing, many people have found themselves out of a job and with no way to pay the Mortgage. This is a position no one wants to be in, but many of these Australian’s will be forced to sell their homes – quickly and cheaply. For the smart investors, there will be plenty of opportunities to purchase Real Estate at bargain prices in the coming months. It will take a little while before the interest rate cuts and increased first home owner’s grant starts to filter in and push property prices upwards – so the best time to buy is now.

Get in while you can. Take advantage of a ‘bargain’ property, fix in your loan with interest rates at all time lows, and watch the market start to take off with an influx of Australian’s looking to get back into the property market. It is well proven that property is potentially the quickest and easiest way to make money! You have to know what to look for and be smart about it, but property can lead to substantial gains and massive wealth! Don’t wait too long – don’t be that person at the end of the boom saying ‘I wish I had bought property before the boom’…. Get in here and take action to help secure your financial future!

Matt McLean

AUSSIE INVESTMENT PROPERTIES

‘Taking the hard work out of finding great performing Australian Investment Properties’

aussieinvestmentproperties@yahoo.com.au

www.aussieinvestmentproperties.com

About the Author

Passionate about Real Estate, and helping others to invest wisely and secure their financial freedom through investing.

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