Conditions seen as ideal for buying
GOOD TIME One of the oldest maxims in property dealing — sell when others are buying, buy when others are selling — is widely acknowledged to be right, and is widely ignored, says Jason Lee, Rawson Auctions’ legal expert and strategist. “Right now there could be no better time to increase your property portfolio. The prices are down, many sellers are desperate, the banks’ rates are low and rentals are good. What is more, the banks are now looking positively at first time homebuyers and, more frequently than most people realise, are prepared once again to give 100% bonds provided the applicant has a clean credit record.” Those decrying the potential of the current market, said Lee, are often speculators who bought in the rising market of 2006-2007, are overextended and now are unable to sell at a reasonable price or to service multiple bonds.
By contrast, those who do buy now will often find that from the outset they can achieve double-digit or near double-digit rental returns.
With so many former home owners now forced to rent and with only limited new stock coming off the production line, rents can only rise further in the next year or two.