There Is Always Good News In Property Investment

"Every market adjustment presents opportunities” says Ray Ellis, CEO of First National Real Estate.

Housing affordability must start to improve as falling prices, in some areas, give first home owners new opportunities to enter the market. At the same time, falling house prices, low vacancy rates and uncertainty in the stock market will encourage investors to buy houses to rent.

Media coverage also plays a major role in the property cycle. “Confidence is driven by what you hear and see and home buyers are going to think hard about buying a house today if the media reports tell them the price is going to be lower tomorrow,” says Mr Ellis.

“Let’s also remember that we have two other major cycles in play apart from the economic conditions. Buyers are always hesitant after a change of Federal Government and we are heading into winter, traditionally the lowest point in the year.”

Overall, First National sees another growth year for property in 2008. Low unemployment, relatively affordable interest rates (historically speaking), and a rising population combined with a shortage of new housing construction should mean that overall growth should be strong, even if performance in some areas is patchy.

“Fragmentation of the market is the key” says Mr Ellis. “Every city and state has areas that will hold their value or show growth. Likewise, suburbs where prices are falling are evident. The key is knowing what you can afford”.