Hot Property Investments

Enquiries on property have been steady this week, with many people wanting to buy before Christmas.

The Official Cash Rate has just been cut by 150 basis points – a 1.5 percentage point cut leaving the rate now at 5%.

Westpacs Chief Economist is picking the official cash rate may be cut even further in the near future to about 4%. He did say unlike the US, we do not have a glut of properties, and is actually predicting a shortage of residential properties as building construction grinds to a halt due to the credit crunch.

So what does this mean? Falling interest rates aren’t very exciting for people who want to leave their money in the bank. (Unless they have already fixed their savings at a higher interest rate), and falling interest rates are very attractive for people wanting to borrow money to buy property. For those that are out to get a deal of the century, remember as interest rates fall, there is less financial squeeze & motivation for people to sell, and buyer competition starts increasing.

Remember the old saying? Today is the best time to buy property, because you can’t go back 30 years and buy at those prices. I love this chart which keeps things in perspective about what property prices are likely to do. Please click here to view it.

I think the Banks lending criteria is realistic right now with a 20% deposit required (depending on the strength of the applicant) – This does reflect the current economic times, and I think fair enough too…if someone can prove upfront that they can save up a 20% deposit, then they are far more likely to be able to manage their money properly so they can continue to meet their mortgage repayments. Please note that banks do still have tighter lending criteria on smaller apartments.

Hot Pick of the Week.

Perfect city pad for a cash buyer! – North facing, 2 bedroom apartment with views of SkyTower and a peep of the sea. Asking only $149,000. Owner going overseas – Try an offer. For more information, please click here

To see all my current listings, please click here now!

Thank you for taking the time to read this newsletter and have a wonderful weekend (fast approaching).

Kind Regards

Aaron Cook
Residential Sales –

Barfoot & Thompson city office