I saw the following 4 headings about real estate on a news website the other day and though I just have to share this. These headings were listed as follows one after the other on the same day
- Housing shortage hits critical levels
- Property prices post largest fall since 2008
- Cheaper suburbs push house prices up
- Mortgage applications on the rise
A mixed message from the media outlet, however it kinda reflects the sentiment of the real estate market in the last 3 months – UNCERTAINTY.
Given that we have had the elections, threat of interest rate rises, constant GFC doom & gloom, conflicting media and the banks squeezing borrowers like first home buyers, second home buyers, developers, self employed, Lo & No Doc’s, equity rich but cash flow poor, cash rich but equity poor, national and international investors out of the lending market – this not surprising.
While on the topic of banks, it was surprising to see the $5.66 billion bank profit achieved for 1 lender last financial year when funding can be challenging and expensive for the lenders! – It’s also very interesting how the banks’ super profits don’t attract super taxes unlike other profitable industries!!
BIS Shrapnel are predicting that commercial property will increase by 50% over the next 3 years. Western Australia got the title of best economy in Australia and Mr Gavin Hegney indicates Perth is the place to invest.
Investors are running rampant with property at the moment. People with money to invest or access to lending are making the most of their property investing choices while they can.
We are finding more and more investors opting for NRAS investments as they are cash flow positive and allow people to buy more than 1 – all of the other benefits are just a serious bonus.