Growing confidence in the market return
Confidence in business is growing every day and this is showing in the property price increases and in the share market increase.
“Mortgage Choice has discovered that 83% of the Queensland respondents to the 2009 Property Investors Survey said they were delaying their upcoming investment property purchase until the First Home Owners Boost expires in December 2009”. Queensland had the highest level of any state.
There is no doubt that the FHOB has had a dramatic effect on the bottom end of the market meaning that there have not been the bargains there for the taking and also not as much to choose from.
The survey also showed that nearly 50% (40%) rated their confidence in the market as high and 37% as very high. This bodes well for the investing market.
Two factors of the FHOB was the fact that the lower end of the houses for sale market was depleted but it did also affect the rental market a little as well, as first home owners opted to get out of the rental market and buy their first home. Rental vacancies in Queensland increased from 3.1% to 3.9%, not of course all due to first home buyers.
Responses in the Queensland survey also came up with the following percentages in relation to the areas around Australia that were likely to provide the best investments in the next two years:
· 41% within 15-50km of Brisbane metropolitan area
· 36% within 15 km of Brisbane metropolitan area
· 12 % outside 51km of Brisbane metropolitan area
· 3% within 15-50 km of Darwin metropolitan area
· 1% within 15km of Darwin metropolitan area
· 1% within 15-50km of Sydney metropolitan area
· 1% outside 51km of Sydney metropolitan area
· 1% within 15km of Melbourne metropolitan area
· 1% within 15-50km of Melbourne metropolitan area
All interesting stuff for those who like to look at these types of figures, but when investing there are also many other issues to look at, so do your homework.
Filed Under: Property News
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