TUESDAY saw the beginning of the new financial year – happy new year! The Australian stock market has just ended its worst year since 1982. Historically this results in more people re-entering the property market. We are anticipating an increase in buyer activity flowing well into 2009. Interest rate rises early in the year did put the early brakes on the re emerging market, where Brisbane had seen price increases averaging up to 20%. The difference between now and 12 months ago is a larger volume of listings available to buy – creating a ‘buyers market’. Noosa experienced a similar situation to Brisbane, according to REIQ figures we’re holding firm in terms of value, even though the sales volumes are down on previous years.
Economic conditions have put additional Pressures on family budgets, many are findingclever ways to save, indeed profit from the current conditions. Many of us are utilizing strategies such as minimizing petrol consumption, shopping more efficiently, avoiding wastage overall in everything from the phone bill to the electricity meter. The government has recognized the need to assist our first home buyers and lower to middle income earners with some encouraging initiatives. I am infinitely optimistic that the worst is behind us. In amongst the gloom are pearls of delight – Marcus Beach has seen a median house price increase of over 25 %, Coolum was identified as one of the most undervalued coastal towns in Australia, the rental crisis seems to have eased somewhat. The market conditions are offering astute buyers superb negotiating leverage. So it has been a yo-yo of a year, yet the general economic consensus at the moment indicates interest rates will hold steady for a while longer, the new tax cuts and childcare changes will see the average income earner better off. My advice is to sit down and take careful stock of your situation, review your assets, speak to a qualified expert about how you can minimize unnecessary expenditure and maximize your tax rebate. The best advice I can give is that now is a great time to buy into the property market, as all the indicators are there for an upward trend.
Till next week,
Olivier