Flat property market conditions are boding well for prospective investors, offering an ideal window of opportunity to get into the property market.
According to Rismark and RP data’s latest Hedonic Home Value Index, Australia’s housing market has flat lined in the second half of 2010 – improving affordability issues.
Since the market started turning at the end of May, Australia’s capital city home values have declined by a total of 1.0 per cent seasonally-adjusted, the Index showed.
With market conditions expected to be flat for the remainder of 2010, astute investors should now look for opportunities to enter into the market, RP Data’s senior research analyst, Cameron Kusher said.
“Early signs suggest that rental rates are once again improving, listings are at above average levels, and leading indicators such as time on market and vendor discounting are creeping up,” Mr Kusher said.
“For those active in the market there is increasing scope for price negotiation and less competition amongst buyers with an above average number of properties for sale.
“These conditions are likely to afford opportunities to purchase property at more competitive prices.”
Mr Kusher’s comments, alongside the Index results, point to an ideal time for fence sitting property investors to make their move into the market.
Of course, on top of reports such as RP Data’s, aspiring investors should conduct their own research in order to suss out local market opportunities.
The best way to get to know any property market is by doing your own leg work, and this starts with visits to local real estate agents and going along to open inspections and auctions to gauge buyer interest and buying conditions.
While it might seem tedious and time consuming the pay offs will be significant – whether it be in the form of better capital growth, paying a lower price tag or higher rental yields.
Regardless of the budget first time buyers are working with, great investment returns are up for grabs, for the well-researched, well-prepared buyers.