Financial Crisis Developments
Following the volatile October we can all see that the sky has not fallen. The share market has gone up then down, up then down, up then down… shall I continue???
Generally the Housing Market has faired really well. In some instances the market has dropped slightly in comparison to shares. The area with the biggest drops is of course the higher end of the Property Market. Generally the middle range has stayed very consistent.
Auction clearance rates have dropped and this is probably not the best time to actually sell by auction. It is however a good time to go and have a look at auctions and see what is out there and what properties are being passed in at. Properties are selling, just not as quickly as previously, as they are on the market for longer.
The increased Home Owner’s Grant has brought a lot more activity into the Property Market and this is also helping to keep the market stable.
There are bargains on the market due to Share Market Investors having to release assets, and people trying to sell quickly for whatever reasons.
I was talking to an investor yesterday who told me she had to sell one of her properties and has instructed the Real Estate Agent to bring all offers no matter what they are. They have plenty of equity within the property and are desperate for a quick sale as they need the cashflow and would be willing to accept any reasonable offer. Indeed, they are happy to cover costs of what they paid for the property. Do you know how many offers the Real Estate Agent has brought them? Yep, you guessed it, none so far.
If you see something that you feel will make a great Investment Property and that suits your circumstances, put in that low offer. You never know, the buyer might just accept and you might end up with a great bargain. If they turn you down you can always up your offer. It is a Buyer’s Market and this is where great capital growth can be achieved if you can whether the storm.
Will you be one of those that will be saying in ten years time “if only I brought that house or apartment in November 2008″?
Happy thoughts for ten years time, and…
Happy Investing!
Filed Under: Property Investment
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