An interesting article that came across my desk today; I say interesting because this has come out a day after the RBA increased the official cash rate.

I have also posted this on my Real Estate Site in case you are getting a sense of Deja Vu

It reminds a little of a comment someone made in a blog I was reading which made me cringe, the guy said ” The share market has gone up today so I think I might get in and buy some”…. ahhhh hmmmm.

Typically people wait for the good news to arrive before they start investing and even though at that stage you can still make a profit, you have normally missed the big gains.

The RBA are increasing the OCR because they believe that the economy has stabilised enough and shown sufficient growth characteristics to be confident that the Australian economy is doing well. Does this sound familiar to news we had in Nz recently?

So as the government expresses its confidence the punters come out of the wood work and start to look for opportunities however the very best opportunities have already been and gone.
The best time to be looking for an investment in Real Estate, or in any market for that matter, is when everyone else is saying stay away not when everyone is trying to get in.

Do you want to wait until our government starts to wax lyrical about how well our economy is doing and the Reserve Bank starts to put interest rates up again before you go looking for investment opportunities or do you think right now there might be some great opportunities around?

Also note in the article that the majority of investors are looking at investment property that’s yields between 4 to 5 percent annually and 66% of investors are looking for long term capital growth. Does that sound like somewhere you know, maybe our little part of the world perhaps?

The article talks about a survey completed by PRD Nationwide

Here are some highlights of that article.

• Almost 90 per cent of investors will purchase property in the next two years.
• 70 per cent of respondents would buy interstate and 66 per cent are looking for long-term capital growth.
• The majority of respondents are seeking a property priced between $300,000 and $450,000 which achieves a rental return of between 4 to 5 per cent annually.
• More than 36 per cent of investors will look to purchase properties located in the middle suburban ring,
• 33.7 per cent want to buy in the inner city
• 14.9 per cent in the coastal areas
• 7.9 per cent the outer suburbs and
• 4.8 per cent are looking at the CBD.
• Two-thirds of investors were seeking a property for long term capital growth
• 22.5 per cent were seeking a rental yield.

I believe the results are indicative of the rise in consumer confidence and considering the poor sentiment towards property over the past eight months in Australia – the results indicate that investors think Australia has reached the bottom of the market.

Back here in NZ, I believe we hit that at least 6 months ago so if you are thinking about a real estate investment, don’t wait too long.

Drop me a line using the contact page to see how a property might work for you.