I’m in the process of looking for my second property – and this is something I never would have considered just 12 months ago. Back then, prices were too high and interest rates were out of control. Now the prospect of investing is far more attractive than it has been for quite some time. Mortgage rates are falling and buyers are back in a position of power.
Values in Queensland have dipped slightly in recent months, but they appear to be largely holding steady. However the uncertainty about the stability of the economy, predictions of rising unemployment and general negativity has prompted most vendors to be flexible.
During boom times, the asking price of a property in Brisbane was generally set in stone and most new market listings were snapped up within a short period of time. These days buyers are taking their time and demanding a better deal.
Provided an offer is reasonable, a lot of sellers are more willing to come to the table in the current climate.
First home buyers are driving a lot of momentum at the moment, but they are also demanding well-priced property and forcing many sellers to meet the market. There are definitely bargains to be had.
It’s not just buying that presents a good opportunity, with renovating also becoming more appealing. Tradespeople are finding that their work is starting to dry up and experts predict availability and price will start to return to pre-boom levels.
Austin Ward, director of Brisbane-based construction specialist Austruct, believes many building professionals will be more available for work as the year progresses.
“In 2008 it would’ve taken weeks to schedule an appointment to quote on a job due to the massive amount of building workings taking place,” Mr Ward said. “With an increasing number of projects being shelved in 2009, tradesmen are now more readily available… no job is too big or small.”
Buying property during a market lull will always be a smarter long-term decision than buying when prices are at their highest. So provided your employment is secure and you can afford the repayments, why not invest?