Surely everyone has come to terms with the fact that the heady days of the real estate boom are well behind us. Quite simply, lamenting “those days” is like the dull sound of a sinking bell.
On the polar side to that period, however, is witnessing the interesting positions people are taking. Right now: some are trying to be released from property’s grip , others are playing a waiting game, planning for real estate prices to cool further and being rewarded with a better “bargain”, whilst the third group of people are holding steady.
RELEASE: with a cooling global economy, warming local inflation and interest rates, and red hot concern over whether Australia’s mining boom will erupt, spilling lava over a nervous population, there are many people feeling the push out of property.
CATCH: secondly, there are those people waiting to be rewarded for their patience by waiting for a bargain to drop from the sky. Of course, the danger here is not having an interest rate crystal ball – what may be a bargain now may not be in the future if interest rates should rise and negate any immediate gain: it’s a fragile balancing-act-like strategy that is either one of exceptional foresight or balls of steel.
Similarly, many are waiting for enough people to jump in before they do – the “lemming” approach is not one that Marquette Turner would recommend, now or at anytime.
HOLD: finally, those able to hold and are able to factor in rising rates are experiencing rising yields, with rents finally favouring the landlord after many years in the doldrums. There are many encouraging signs that rental returns are improving. Recently released data shows that there are now 60 suburbs within their respective capital city’s metropolitan area, throughout the Australian mainland that are experiencing a gross return of six percent minimum
At present, the cost of living and affordability are factors being felt by most Australian’s and whilst getting used to it maybe a bitter and painful pill to digest, there may be some good lessons and ever better decisions made.
Look at it this way, if it encourages real estate buyers to take more measured and counseled choices and decisions than once they may have, then the future of Australian real estate is solid, positive, and an excellent investment strategy. Remember these words: once a good buy, always a good buy!
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