Did any of you see Rudd’s essay in The Age on Saturday (July 25th)?
It was, in summary, an explanation of what caused the current economic crisis and what’s required for the road to recovery. It discussed that the root of the crisis lies in the preceding decade. A decade of excess and that the excess being enjoyed was largely on credit. When discussing greed and the US commentator Bill Gross summarized as “For too long it’s been McHouses, McHummers and McFlatscreens, all financed with excessive amounts of McCredit……. What a colossal McStake” This was my favorite part of the article albeit a concerning truth. The article contained lots of information about the road to recovery. This article was the second time in as many days I’ve heard Rudd discuss an increase in interest rates. So what does that mean for you and your property plans?
I’m a firm believer in “as soon as it’s in the media it’s as good as done”. So, for those of you who want to sell before a rise in interest rates NOW is the time to do it, before the media start covering it as a daily story.
People likely to be affected most by an increase in interest rates are those wishing to sell “investment only” properties, these are serviced & student apartments. These properties have experienced some renewed popularity with the low interest rates as they have offered better returns than having money in the bank and are more stable than the recently disappointing stock market. As interest rates rise that incentive dries up and the window of opportunity closes. So if you’ve considered selling an investment only property, speak to your Harcourts City Residential consultant now to discuss your individual plans.
People with properties under $600,000 who are thinking of selling, well, you’ve got more than just a proposed interest rate increase to consider. The First Home Owners Grant decreases at the end of September and then again in December. If your property is likely to attract first home buyers a sale before September 30th would be the best bet and then before the end of December if you can’t get organized in time for a pre September 30th sale.
But my properties post $600,000 I hear you say! Well, the year started off a little slow but in recent months we have seen confidence return to this part of the market. It is still a little fickle and slightly unpredictable. A general comment here would be irresponsible and so I would encourage you to discuss any plans with your Harcourts City Residential consultant. We can provide specific comparable information, discuss best timing and other crucial factors to allow you to make an informed decision.
Visit us at www.cityresidential.harcourts.com.au or via email cityresidential@harcourts.com.au or we’re always open to a chat on 03 9664 8100.
For the full essay visit: http://www.smh.com.au/national/pain-on-the-road-to-recovery-20090724-dw6q.html?page=-1
*Harcourts City Residential has gathered this information to provide an interesting document for apartment owners and prospective purchasers. Harcourts City Residential may not have affected any or all of the transactions noted; rather we’ve gathered as much market information as possible on ALL transactions to be as conclusive as possible.
Information contained herein is gathered from a range of sources including but not limited to; The Age Property Results, The Herald Sun Property Results, Valuer General Information & Agents own investigations. All efforts are made to verify the information provided. The information is not to be relied upon or used in dealings with third parties and people should make their own investigations regarding their own property or personal circumstances. Opinions offered are just that, our opinions & observations and should not be treated as fact.
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