Australians that have stood on the sidelines at property auctions waiting for the right time to buy – would do well to make a purchase now.
Housing Industry Association chief economist Harley Dale said investors with adequate savings would do well to invest in property as it is a real “buyer’s market” at the moment.
However property purchase is not a small investment and anyone looking for quick gains should stay away. There are the stamp duty on purchase, legal costs and costs of obtaining home loans. If you are prepared to wait for 5-10 years, then property should be a great investment.
There is significant competition between vendors at the moment, which is putting the bargaining power firmly in the hands of the buyer.
Furthermore home loans are at very low levels with fixed rate loans available at under 6%.
“So, if you have the funds to make a financially responsible decision to buy property, then now is definitely a good time to buy.”
Of course, Mr Dale warned any investors entering the property market to bide their time before selling.
“We are not seeing the yields we saw 10 years ago. In many instances, this makes the buying environment even better. But, if you want to see a return on your investment, you have to be in it for the long haul.