An Ideal time for Investors to Purchase

It is a good time for an investor to expand your portfolio with the property market starting to pick up with figures showing that the total dwellings sold in Western Australia in the March 09 quarter was 12,600 (median price $348,500 unit / $430,000 house  $230,000 land) “versus” 8,926 (median price $342,300 unit / $420,000 house / $220,000 land) in the December 08 quarter. 

Also, the very low interest rates and median weekly rent of $360 also prove to be a good time to to make the decision to sell or buy property.

Property Market Showing Positive Signs

The Real Estate Institute of Australia (REIA) President, Mr David Airey said ABS figures released on 10th June 2009 highlight a property market that has stabilised and showing signs of growth as investors make a return to the market, with first home buyers continuing to be very active.

“This is a really positive sign for the property market and shows that investors are starting to re-gain their confidence while the main driving factor for first home buyers are low interest rates and the availability of the First Home Owner’s Grant Boost (FHOG Boost)”, continued Mr Airey.

The data released also shows a 0.9% increase in the number of established home purchases, in comparison to a 0.5% decline in the number of new home purchases.

“These results show that REIA made an accurate assessment of buyer preferences in its submissions for an extension of the FHOG Boost for both new and existing homes”, continued Mr Airey.

“While the proportion of first home buyers increased to 28% of total owner occupier housing finance commitments, the average loan size decreased by $2,500, reflecting the tightening of bank lending practices in the current economy”, concluded Mr Airey.