This month we have seen quite an increase in first home buyer activity in the Adelaide market. It makes sense. There is a good supply of stock- good entry level homes, that have been on the market and overstayed the anticipated duration of their marketing campaigns initiated before our 2% interest rate decrease and then suffered a long wait while the global financial instability was being reported.
The Adelaide market has enjoyed 16-18% growth 2007-2008. The market has levelled in recent months, which means it is an excellent time for a first home owner to buy quality property and enter the market. The government has put a time limit to their FHOG increase, so we expect to see strong activity and competition in this sector after Jan-Feb if buyers are to settle their purchases in time.
Not every house is going to be a good, long term investment and it is essential to identify several aspects that determine value in today’s market. Times have changed.
Properties in the $200k-upper $300’s will hold their values in the medium term. Why? The government is injecting funds in order to boost first home ownership in a tough market. If they buy well, they could, subject to serviceability, purchase their first home using the government’s recent windfall, and have money left over after purchasing costs. Effectively this is real estate, “no money down”...but you must buy well.
We have recently been purchasing quality properties in the $400 – $700K at very good prices. The properties being sold in this price range are typically heavily mortgaged, so there are pressures to retain as much equity as possible for the vendors. Negotiations are taking longer and must be handled carefully in order to buy these homes well.
The $950k- $1.2 million is where there is room for price reduction. The pressure is on. Owners here are exposed to the stock market, SME’s and the govt is taking more rather than handing is over as in the case of the First Home buyer category.
You make your money in real estate when you Buy as opposed to when you Sell. If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997
The Adelaide market has enjoyed 16-18% growth 2007-2008. The market has levelled in recent months, which means it is an excellent time for a first home owner to buy quality property and enter the market. The government has put a time limit to their FHOG increase, so we expect to see strong activity and competition in this sector after Jan-Feb if buyers are to settle their purchases in time.
Not every house is going to be a good, long term investment and it is essential to identify several aspects that determine value in today’s market. Times have changed.
Properties in the $200k-upper $300’s will hold their values in the medium term. Why? The government is injecting funds in order to boost first home ownership in a tough market. If they buy well, they could, subject to serviceability, purchase their first home using the government’s recent windfall, and have money left over after purchasing costs. Effectively this is real estate, “no money down”...but you must buy well.
We have recently been purchasing quality properties in the $400 – $700K at very good prices. The properties being sold in this price range are typically heavily mortgaged, so there are pressures to retain as much equity as possible for the vendors. Negotiations are taking longer and must be handled carefully in order to buy these homes well.
The $950k- $1.2 million is where there is room for price reduction. The pressure is on. Owners here are exposed to the stock market, SME’s and the govt is taking more rather than handing is over as in the case of the First Home buyer category.
You make your money in real estate when you Buy as opposed to when you Sell. If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997
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