Frequently Asked QuestionsNews & Events

From the GM's Desk

 
And so we move in to a new year and early indications are that we are in for another period of uncertainty, although it is interesting to note that both the stock exchange index in America and Australia finished last year at pretty much the same mark as they started. An interesting observation given the media saturation of the economic environment across the world.

History would normally tell us that when the stock market is suffering property is usually seen as the safe haven and slowly but surely prices increase in direct relation to demand. This time around it hasn’t happened however early indications are that the property market might finally be awakening from its slumber. The numbers suggest the vacancy rate is dropping and demand for rental properties is increasing.

And maybe that is as it should be if only because property prices are at an affordable level and the competition between lenders has driven interest rates down to a level that should be maintained for the foreseeable future. And add to that mix a relaxing of the lending criteria by most lenders. It’s not open slather but certainly a far more open attitude than that which prevailed during the GFC.

For those considering buying a property it is worth remembering that the days of short term capital growth are gone for the time being, so rather think of it as a longer term investment in your future. If you want a quick buck there’s always the penny dreadfuls on the stock market.

Cheers for now.
 

 
 
 
Jeff Rimmer
General Manager