Economic Jigsaw Takes Shape
20 Apr 09
Economic Jigsaw Takes Shape
As the economic jigsaw that is 2009 begins to take shape, the combination of extended first home buyers grants and low interest rates has highlighted the opportune timing to invest in residential property - especially for those wishing to break the rental cycle.
Starr Partners CEO, John McCormack has observed that “low interest rates, softened home prices and rising rents all add up to a solid case for buying property now. If you have a stable work situation it means you are well positioned to take advantage of the current opportunity”.
"The uncertainty of the employment market has had a definite impact on the outlook for investment and first home buyers. Rising rents and low interest rates point to the obvious financial benefits of entering the housing market now" he said.
McCormack pointed to current statistics from the ABS showing that rents increased 8.4% over the past year. This combined with housing shortages in many parts of Sydney and the Central Coast point to the possibility of continuing increases in property rents over the next 12-18 months.
Recent empirical data from the Starr Partners branch network suggests that the first home buyers are outnumbering the investors but Mc Cormack expects this to change once the extended first home buyers grant finishes in June 30.
McCormack noted, “We expect that investor numbers will grow considerably as increases in rents and lower interest rates attract them to a very sound investment proposition that is the Sydney residential market”