There has been no shortage of doom and gloom regarding the perilous state of the property market, no thanks to the guy writing this article.
It has been much reported that according to APM’s latest June Quarter figures, most major capitals experienced sliding house values and more of the same is being forecast over the next 12 months. This of course begs the question – should I be buying or selling in this environment? It all depends on your situation.
If you are changing properties, that is if you are an owner-occupier buying and selling in the same market then the ups and down of the property values should not matter, swings and roundabouts as they say.
The few first home buyers that are out there probably don’t need any encouragement to tread with caution; however they shouldn’t abandon looking altogether. There are 25,000 more properties on the market nationally than there were at the same time last year. Many of these will no doubt be distressed sellers or mortgagees in possession who will inevitably sell their properties for far less than the current market rate. For first home buyers that are patient and thoroughly research there will be bargains out there.
Most investors view property as part of a long-term investment strategy. Even many young investors view their properties as part of their nest egg. So the short-term ups and downs of the property market should be of no concern. Shorter-term speculators in property markets rarely make much money out of this strategy anyway but if they are not in for the long haul they should probably cut their losses now.
Some may feel that my comments are unwelcome; perhaps even heartless, but people in the property market deserve the truth and need accurate information upon which to make informed decisions.
– Australian Property Monitors – Sydney Edition