Saturday, October 17, 2009
Are investors back?
a turbulent month folks we have had. Apart from me starting this post with Yoda speak, the Reserve Bank, or as I like to call it, GOD, has not only began lifting the reserve rate, but is warning of a volatile year ahead with as much as 5 consecutive rises in the next 6 months if you believe some of the media reports. This is not new news though. GOD has warned people not to be too greedy, to take it easy, but no, just like Adam, many people were not listening. I for one. So now I'm in a pickle of some sort, having to sell at least one property before the repayments get out of control and I'm left eating tripe, which, as I'm sure many of you know, is a bargain for only $7/kg from Woolies.
Saying this, I would surely love to keep all my properties, since all signs are pointing to a boom, or more realistically, a tiny spark compared to what we have enjoyed for soooo long. I mean people are getting all too excited over a 20% increase in three years, as has been reported for Sydney, and a 10-15% for most of Australia. But come on, 3 years? My first IP bought in 2004 went up approximately 80% in three years, and that was bought immediately after the all so sweet 2003 price sillyness. The market seems similar to back then, especially in Brisbane. A lot of houses on the market, at cheapish prices in the middle ring and quite a few bargains in the outer ring right now. It was similar in 2004, it's just that we were young and naive, thinking it was going to be really hard to pay back a $172,000 loan, instead of picking up a massive bargain int he mid 200s. We have learned now though, that the Brisbane "rings" behave in a very funny way. In my opinion, the inner ring does not start the price jumps anymore, since it's so over heated. No, the price rises now begin in the middle ring, the typical leafy suburbs of Indooroopilly and Corinda, and up towards the Grange, this are the real indicators, the real kings of property booms in Brisvegas. And right now, these are the type of suburbs that the first home owners have began devouring and, investors are starting to play here too.
Anyway, if you're interested in a property in Toowoomba or Launceston, send me an email.