Sunday, June 5, 2011

Property Investing in 2011

I have been wondering for a while whether investors in 2011 are active. As no doubt you know the market is having a breather and there are A LOT of properties for sale. So, I posed the question on Somersoft and here are the results:

As you can see, 11% of people who have read my post are still buying, and not just one, but multiple properties. In fact, some are buying whole complexes and one investor has bought 14! He is an exception, but 44% of respondents have purchased already up to June. This does mean that 56% are either sitting on their hands, consolidating, offloading, or going bankrupt.

There is much to read into this data. If we do in fact have almost half the investing population still active, this should echo the sentiment of real estate agents, who, as far as I've experienced in my investing regions, are all saying the market is flat, only JUST becoming a little bit busy. So now I'm confused; is the market flat, or is the market busy, and perhaps more importantly, is the market moving ahead?

While I don't tend to analyse this area too much (as I believe property markets move ahead for medium to long term investors, which I believe I am), if the market is flat, now is the time for investors to pick up bargains. Now is the time to see if, even at 7% interest rates, you can find cf+ properties. Now is the time to see if an investor can try to penetrate inner city, or exploit regional/rural areas. It makes sense for cashed-up investors to be active, to put in ridiculous below market offers to see if they can catch a beauty.

Until next time!

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