Although it is premature, and remiss, especially as a Real Estate Agent, to predict some sort of global crash, in any market, it is certainly a popular speculation with the American stock market wrap this morning (Australian time) – All American fed global markets closed down.
We have all heard stories from people who bought property in the ‘GFC’ for a ‘great price’, people were losing money hand over fist and clearing whatever assets they had, in order to repay, reinvest or bail-out, and opportunistic investors were taking advantage of this.
Furthermore, as the new spike in the Real Estate market has seen unusually, nee, record premiums paid for property throughout the Sydney – and Australian – market, is it these ‘once bitten, twice shy’ investors of yesterdays ‘GFC’ that are securing their money in the property market?
It may be that the investors that obtained these great prices caught the property bug, or maybe the people who sold at the time saw their property grow 15% in 12 months in the wake of the ‘crash’ and realised the potential for return in the property market.
Whatever it is, security in the property market is certainly helping to keep people interested.
With interest rates said to remain at these somewhat record low levels, the RBA, after the recent board meeting has given no indication on its thoughts of the property market but has indicated that interest rates will remain low, at this stage.
This means that although prices in property are seemingly spiking or ‘bubbling’, our repayments are lower and our introduction into the market is comfortable and amicable.
What does this mean for property purchasers in today’s market?
It means that there is confidence of growth in property security. Stock-markets are crashing, commodity industries are competing fiercely, it is obvious that the equity markets are losing their sex-appeal as secure investments. But bricks and mortar are commensurable to the money invested, yet disproportionately high in the return obtained. This is seemingly in spite of large input prices and laughs in the face of the pessimistic speculation of some people.
So keep buying, keep selling and keep and eye on the market, the opinion is, when it falls it will fall hard, but the figures suggest that it hasn’t even skipped a beat yet.
Thomas Merriman.
Thomas Merriman 