Saturday, January 31, 2009

despite the reported gloom

"After an eventful year’s end, it’s difficult to see where residential property is heading into the new annum. Media reports daily on the poor state of the economy and the likelihood that things will get worse before they get better, yet some signals are conflicting. There are plenty of locations and sectors that still lack stock and it appears that landlords are continuing to get historically high rents despite the reported gloom."

"For those wanting to bag a bargain perhaps the best prospects lie in some of those previously difficult to enter suburbs such as New Farm and Tenneriffe. Buyers over $700,000 have been thin on the ground and tenants are finding rentals a bit pricey, so it seems demand in these golden suburbs is becoming a little tarnished. Keep your ear to the ground and you just might bag a winner, but remember to keep things in perspective. Look for capital growth over a reasonable three to four year horizon. You’re unlikely to make your killing over the next 12 months."

"Of a related nature, good opportunities are also evident in the current market to purchase resale apartments in near new and recently completed buildings on the Gold Coast at prices which are at a significant discount on both the original sale price of the unit and also on the asking prices of similar new units. In some instances, the resale price of apartments appears to be below replacement cost of a similar new apartment."

Source HTW

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