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The 3 Moons of Real Estate
Friday, November 28, 2008
At the time we write this report we can see what we call the “3 moons of real estate" coming into alignment .
The first moon is home interest rates which are expected to dip further and reach their lowest level in the first half of next year.
The second moon is rents, which have been rising for about 2 years now, due to the shrinking supply of property investors buying and renting.
The third moon is property prices, which depending on the sector ( price range ) of the market have eased by we believe about 10% during 2008 on the northern beaches. The industry is predicting further price falls as business confidence declines of around 10% ( depending on the property sector) in 2009.
The first moon is home interest rates which are expected to dip further and reach their lowest level in the first half of next year.
The second moon is rents, which have been rising for about 2 years now, due to the shrinking supply of property investors buying and renting.
The third moon is property prices, which depending on the sector ( price range ) of the market have eased by we believe about 10% during 2008 on the northern beaches. The industry is predicting further price falls as business confidence declines of around 10% ( depending on the property sector) in 2009.
Certainly the higher the property value the less the available buyers so the lower end of the market have not been affected as much as the prime position properties.
A rare opportunity.....
For the investor moving from the stock market and managed funds, 2009 will provide a rare opportunity while the 3 moons are aligned to aquire cash flow positive or neutral residential property investments. Lock in the rate for 5 years and watch the investment grow. The industry watchdogs are predicting growth in real estate prices to return in 2010.
- Alan Morton - Business Development Manager