ARE WE IN A REAL ESTATE BUBBLE?

After this week’s announcement from the RBA that interest rates will remain unchanged, there has been a lot of talk about if we really are in a housing bubble at the moment, and if it will burst soon. So I thought it would be interesting to see what the experts have to say.

According to Mark Hewitt, General Manager of Sales and Operations for Australian Finance Group, “Australia has never really seen a housing bubble like those experienced in the US and some parts of Europe following the GFC. People are getting the potential for a slight price correction or a slowdown in growth mixed up with a burst property bubble,” he says.

Hewitt says owner-occupiers and investors should look at property as a long-term investment, and be prepared for shifts in the market. “You should always leave yourself a buffer,” he says. “You should be in a situation where repayments on your property are not going to stretch you.”

It’s a well known fact that investing in the property market has never been a “get-rich-quick” scheme, and if only we had made those property purchases 20-30 years ago in areas that have boomed in the last ten or so years. But hindsight is a wonderful thing, and if we have learnt anything it’s that real estate can be solid investment if you are willing, and able, to ride out the slower market periods.

More importantly you have to be “in” the property market to benefit from any growth, and while interest rates are low and rumoured to stay low for a few years to come, there really is no better time to buy.

The sales team at openhomeonline are very knowledgeable about the Bellingen area and it’s surrounds. In case you didn’t know, many of our sales are made before the property even makes it to the market. This is largely due to our team knowing and understanding what buyers and sellers on our books are looking for, and some of it is just about good old fashion timing!

So feel free to give us a call anytime to discuss any of the properties currently for sale, or to list your place with us.

Regards, the team at openhomeonline.