Monday, 9 March 2009

Property Market

I haven't examined property markets in a while, except the one in Serbia. But, property is getting more and more attractive investment option in Australia at the moment, too. This probably is true globally. The reasoning behind getting into the property market now is that
  • interest rates are lower for paying off the property loan, and attractive rates can be fixed for some time,
  • interest rates on savings are lower making savings less attractive,
  • stock markets are in free-fall, making them a no-no at the moment
  • property offers a cash-flow, which provides some security in the economic downturn
  • property prices are lower than they were a few months ago
All these reasons make sense. The thing that makes this option work is to find a property that lost more of its value than other, similar ones. Either locking the current interest rate or waiting a few months to see whether the rates will go lower also adds the benefits.

In Australia, the First Home-owner Grant Bonus is still valid. This means that the Government is giving away A$21,000 to first-time home owners instead of standard A$14,000. It is a significant boost in case you do not have a property ownership already. Many have used this opportunity in the past few months, which was indicated in the statistics of the number of grants issued recently.

I reckon the situation in the U.S. is much more drastic than in other areas. Some properties are being advertised on eBay for as low as $1. Now, that is an investment. Of course, such a property requires travel, most probably. Maybe some renovation. But, it can also be sold through agents without ever seeing the property live. If looking for an agent in the U.S., check Real Property Management.

Although one of my primary goals is to own a home, no matter how small, it appears to be very hard to reach it. So, for the moment, it remains a dream, still. :)

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