Notices
Now It's Time to Buy
31 May, 2011
NOW IT’S TIME TO BUY
Lower prices and rising rents make it a good time to invest in a property!
Investors in the Adelaide property market have an opportunity to take advantage of lower prices and rising rents to build their portfolios, experts say. Ironfish managing director says there is no doubt savings can be made in the current market.
‘Just like shares and other forms of investment, property goes in cycles and every investor is looking at the right time to enter and exit the market,’ he says.
‘There’s no doubt the market has slowed significantly since the beginning of the year and some caution lingers in the air. I’d suggest that we’re now at the bottom of the cycle and we will see signs of the property market recovering over the next 12 months – it’s therefore a good time to enter the market’.
Property prices typically double every ten years but during this period there can be periods of lower-than-usual growth.
‘In my view, it’s the investor that looks ahead and isn’t influenced solely by current market conditions who will benefit the most’ he says.
Rental returns have remained strong in Adelaide, rising by 2.8percent last year and are tipped to rise well above inflation rates throughout the year. ‘Although interest rates may rise this year, investors are finding that rental growth is outpacing any increase in the cost of their borrowings’ he says.
Real Estate Institute of SA president says the market is in prime condition for investors to make their move.
‘SA has historically low vacancy rates at the moment so there is a solid pool of tenants and properties are achieving good returns for people, there are more homes on the market at the moment so it really all adds up. Because there is more choice, hopefully investors can buy at the right price and there is a ready pool of tenants’.
He warns anybody considering buying an investment property needs to consider it as a long-term investment. ‘Its very important people don’t think they will make a fortune overnight. They need to consider it over a long haul’. We do recommend people receive independent financial advice from their Accountant or Financial planner and make sure they do their homework’.
The Advertiser, May 28, 2011 Sheradyn Holderhead
Sunny