How the First Home Owners Grant Affected the Market
There are a lot of property investors that like to buy at the lower end of the real estate market. Some investors would rather have 6 properties at $290,000 instead of 3 at $580,000. It is at this lower end of the market that most of the first home owners are purchasing.
The affect this has had is a drying up of stock at this lower end and there is no doubt that demand is increasing. It means that if you intend to purchase in this price bracket you are going to need to keep very up to date with property prices, have your finance organised, and be ready to make decisions almost on the spot.
On the flip side, if you want to sell in this price bracket you will have a chance of getting a good price for your property.
In 2008 first home buyers hoped to purchase in this market but were finding it difficult to get finance. There seems to be an easing of finance in certain cases and there is more movement in the market because of it. It seems that the higher priced properties are still struggling to get their asking price. In fact there was a property on the Gold Coast which sold for $9 million when in fact the owners had turned down $14.5 million last year. It was initially bought for $13.5 million in 2006.
Filed Under: Property Investment Tips
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