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SSC Newspaper : February 2013
By Steve Devine It is so refreshing to see that 2013 appears to have started with such a sense of optimism and even be er that the Reserve Bank of Australia (RBA) is acknowledging this optimism. It's de nitely something that has been missing in the property market for some time and I think while we're probably all still a li le hesitant about reading too much into it, we can slowly start to feel things are ge ing back onto a more even keel. Wouldn't we all like a fair and equitable market where buyers can buy and sellers can sell, without the boom or bust conditions that we've seen in recent years? Indications are that interest rates will remain low this year and with the hold on the cash rate this month, the RBA has con rmed this is their stance at the present. In the statement released on February 5, RBA governor Glenn Stevens made the following comments: "Global growth is forecast to be a li le below average for a time, but the downside risks appear to have abated, for the moment at least. Sentiment in nancial markets has continued to improve, with risk spreads narrowing and funding conditions for nancial institutions becoming more favourable. e board's view is that with in ation likely to be consistent with the target, and with growth likely to be a li le below trend over the coming year, an accommodative stance of monetary policy is appropriate. e in ation outlook, as assessed at present, would a ord scope to ease policy further, should that be necessary to support demand." With comments like these and headlines in the press like "Why 2013 could be the best year in almost a decade for property investors" and "Mild cyclical recovery for property market over next 12 months, but a be er bet than bonds and cash", history shows buyers will stop procrastinating and start buying. Rather than continue to sit on the fence, they'll make their move as they won't want to miss the market. Market analysts are indicating we're just coming out of the bo om of the property cycle and that in the next 12 months we'll start to see the upswing. As explained by Robert Projeski, the founder and managing director of Australian Mortgage Options: " is phenomenon starts when smart investors re-enter the property market. As they have invested early in the cycle and in a favourable climate, they start to talk to their peers about their purchase. is in turn drives cha er among groups of people, which in turn drives property sales. Your friends buy in, the taxi driver buys in and soon, everyone is back in the market." While we never know what's around the corner, all indications are this explanation is in fact an accurate indication of what lies ahead for the next 12 months which means we're in for an exciting year ahead in real estate! Strathfield Scene 23 PROPERTY An exciting year ahead devinere.com.au STRATHFIELD | CONCORD | DRUMMOYNE MRE THINK DEVINE More Strathfield owners entrust Devine to sell their home than any other agency, and have done since 1955. Thinking of selling your property? Think Devine, call 8080 SELL (8080 7355) to get started. QIs it better to have an apartment or a house as an investment property? There are many arguments for either option. In Strathfield and surrounding suburbs apartments are more in demand than houses. However, there are many less houses for rent and this allows the demand to generally match the supply. Apartments are generally cheaper to purchase and rents in comparison to the purchase price are higher. Houses tend to increase in capital value at a greater rate than apartments, so if you have a longer term view of property as an investment, this may be a better option.
December 2012 SS