There will be no divine sign telling you when the time is right to invest in the Australian property market, when the market slows to what is known as “a buyers’ market” is a great time to invest. This is primarily because more properties are available for sale than there are buyers looking to spend. The overall atmosphere of the real estate markets seems gloomy.

Take Advantage Of Tough Times

All too often, the media tends to add emphasis on the situation with desperate stories of struggle and hard times. Anything that causes nerves to jitter in the market and gives other buyers pause is the ideal time to swoop in and invest. This is the perfect time to take advantage of an economic downturn.

You will have a huge selection of properties from which to choose thanks to bank foreclosures, etc. Even better, your competition will be almost non-existent as fear overcomes other property investors. You will find during tough economic times, property owners are more motivated to sale and will usually except lower offers.

A Sale Is A Sale

Think about shopping in retail stores when the prices fall, most of you would run right out and take advantage of the many deals available to you. The same bargains can be found in the property market when the prices drop.

The prices in the real estate market rise and fall on a regular basis. It just seems right to invest when the market reaches an overall low. In addition to slow economic times, competition is less fierce in the market during the gloomy months of winter as well as a few weeks following the Christmas season, when less people are spending money on new property investments. Again, these are times when sellers will be most motivated to take your offer and allow you to negotiate for the best bargain.

Property Options Australia
Property Options Blog © 2006 - 2009

If you enjoyed this post, make sure you subscribe to my RSS feed!

According to the latest figures that were released by the Australian Bureau of Statistics, the unemployment rate has risen as high as 5.7%, the greatest rise in almost two decades. Sadly, over the next couple of years, the unemployment rate is likely to continue to rise. Naturally, investors are concerned as to what will happen to the property market as a result. In fact, the majority of investors in the Australian real estate market list the rise in unemployment as their most immediate concern.

Good News, Bad News

There is good news, and there is bad news. The bad news is that the rise in unemployment will affect the property market in different areas, in different ways. The good news is that it is not likely to affect the market quite as much as you may fear.

Keep in mind that the current unemployment rate in Australia is tapering off from historic lows. Eight years ago, at the beginning of the boom in the property market in Australia, the rate of unemployment peaked at more than 7%. Just three years ago, the rate of unemployment was at five percent, which the majority of economists consider full employment.

Consider Everything

There are several points that must be considered in order to fully understand how the real estate market in Australia is affected by unemployment. First of all is to explore the statistics, such as the rate of participation. You must also take into consideration that the level of employment for women has risen significantly over the past few months as more and more families prepare for hard times.

As we look back at the last three downturns, the rising unemployment rate had no obvious impact on property prices. The property market in urban areas may see a rise in unemployment as high as 10% before a negative impact surfaces.

Property Options Australia
Property Options Blog © 2006 - 2009

If you enjoyed this post, make sure you subscribe to my RSS feed!

Intelligent property investment requires you to do just as much research and pay as close attention along the way as you would if you were purchasing a home for you and your loved ones. If you focus on the steps that you must take to invest in the real estate market, you will simplify the entire process.

The Cost of Investing

There are banks and other financial institutions that can loan as much as ninety percent of the cost of investment properties. You will only need to come up with about ten percent of the value of the investment property as a deposit.

Additional costs and fees make up about five to seven percent of the purchase price of the investment property. These expenses include:

• Building insurance needs to be activated at the contract exchange. If you plan to occupy the property, you also need to include content insurance.
• The transferring legally of a property title is known as conveyancing.
• You are required to pay a goods and services tax on any new land and home packages, real estate agent commission, solicitor and conveyancing fees, moving costs and valuation fees.
• If you borrow more than seventy-five percent of the value of the property, you will incur mortgage insurance.
• Stamp duty covers the price of the property and the government tax for mortgage documentation.

A financial professional will be able to advise you on which loan is right for you. You will also be able to find assistance with the entire application process. Once you have all of your finances straight, the next thing to do is find the right property to get you started investing in the Australian real estate market. You will be absolutely amazed at how quickly you are able to build your empire.

Property Options Australia
Property Options Blog © 2006 - 2009

If you enjoyed this post, make sure you subscribe to my RSS feed!

At first, when you think about how the price of property is declining in all of the capital cities with the exception of Darwin and Adelaide, it only makes since to think that the real estate market in Australia would be bombarded with bargain properties; however, that may not be the case exactly.

Louis Christopher of SQM Research says,

“A bargain can always become a better bargain…” he adds, “…property is never priced too high to go higher, nor too low to go lower.”

The biggest problem investors face when prices fall in the property market is the fact that not all property prices are falling, nor are all the suburbs. As a matter of fact, real estate that is priced lower is intensely challenged because of the grants for first time homebuyers, making it difficult to find the best bargains.

According to Liam O’Hara, chief economist for Australian Property Monitors, bargains are more likely to show up in the prosperous suburbs of Australia, where the debt-to-income ratios are higher. This is mainly because when times were not so tight; these people were allowed to borrow more money.

Bargain Hunting Guidelines

Bill Fatouros, the head of residential valuations at Landmark White, says it is a bargain when the investor pays at least 30% less than what they would have two years ago. Fatouros warns that it can be complicated to come out with the best bargain when prices in the market are on a downward slide. It is important that you know what you are looking for to be able to tell when a bargain is truly a bargain.

• Find out why the property is available, such as divorce, financial trouble, death, etc.
• Do adequate research to find out the circumstances of other sales in the area.
• Remember that a low price does not always equal a high value.

Once you begin researching the property market in Australia, you will easily learn where to find a true bargain.

Property Options Australia
Property Options Blog © 2006 - 2009

If you enjoyed this post, make sure you subscribe to my RSS feed!

Australia is no exception to the global credit crisis that is affecting investors all around the world. It has been estimated that there will be close to thirty thousand homes repossessed by the end of the year, and more than half of the people living in Australia will be seriously stressed with their mortgages.

In addition, the rate of unemployment in Australia is also having an effect on the property market. It is forecast that the rate of unemployment will rise to more than seven and a half percent by the end of this year. Although this crisis may be crushing the property dreams for many, it is a queue for investors to “buy, buy, buy” and get in on the Australian property market. There is no better time than the present, if you are interested in making a fortune with real estate in Australia.

Just The Beginning

More than seven thousand new homes are expected to be built in Sydney within the year, which is the lowest growth rate the area has seen in fifty. This is leading a prediction from economists for a rise in rental rates of at least twelve percent within the current year, which comes after an increase of eight percent just last year.

Investors are fully aware of the profit that can be made from these circumstances. They are finding out fast that there is profit to be made from the very beginning when you put your money in the property market in Australia. The only concern of many investors is the battle they face with first time buyers on the market, who are eligible for funding from the government to purchase their property. With interest rates steadily decreasing and rental rates skyrocketing, more and more people are deciding that right now is the right time to invest in Australia.

Property Options Australia
Property Options Blog © 2006 - 2009

If you enjoyed this post, make sure you subscribe to my RSS feed!