Thinking positively
February 7th, 2009
PROPERTIES under $500,000 will this year play a major role in an overall market recovery in 2010, according to Australian Mortgage Options managing director Robert Projeski.
"Indications are that we are likely to see further rate reductions, and, with that being the case, property sales in areas where the purchase price is up to $500,000 will see significant increases as a result of the government stimulus packages," he said.
"The bonuses for first home buyers, including a $14,000 lump sum for existing properties and an additional $7000 to acquire new properties were provisions that will hopefully be extended beyond June 30 deadline for contracts exchanged prior to that date.
"If there is an extension you will see continuing good demand for properties in the under $500,000 price bracket. This will be the start of the ripple effect when prices should start to move in an upward direction."
He said rental demand would still be very high, with vacancies very low.
"Unemployment concerns will pave the way for investors," he said.
"In addition to the properties under $500,000 are to be had in holiday homes regions.
"We believe investors will start coming back into the market with rent increases and lower borrowing costs creating positive cash flow," he said.