Thursday, October 22, 2009

Buy property now, before the market worsens again

SHOOT: Have you heard of a sucker's rally? If you buy property now, you're a sucker. It's still on it's way down. If you own property, consider subdividing and renting, because renting is going to be big from here on out.
clipped from

"With massive electricity hikes looming, upward pressure on oil ahead of the northern hemisphere winter and a volatile rand, the SARB's MPC committee would have been deeply concerned about inflation getting out of control," he said.

Falconer said the property market could certainly have benefited from a further rate cut, "but we'll have to be content with a reduction of 500 basis points since December last year".

"But potential homeowners have held back, hoping for further rate cuts," he said.

"Property prices are as low as they're going to go; the market is well stocked with bargains; there are many eager sellers; banks are again advancing credit; there are clear indications the property market as a whole is starting to move again, and it's time for buyers to get back in."

"The Australian Reserve Bank has become the first central bank to hike its repo rate, and we may follow suit in the next few months," Falconer said.

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