Hickinbotham news
Now it's time to buy
The Advertiser
Saturday, May 28, 2011
Lower pricings and rising rents make it a good time to invest in property.
Investors in the Adelaide property market have an opportunity to take advantage of lower prices and rising rens to build their portfolios, exports say. Ironfish managing director Damon Nagel says there is not doube savings can be made in the current market. 'Just like shares and other forms of investment, property goes in cycles and every investor is looking at the right time to enter and exit the market,' he says. 'There's no doubt the market has slowed significatly since the beginning of the year and some caution lingers in the air. I'd suggest that we're now at the bottom of the cyle and we will see signes of the property market recovering over the next 12 months - it's therefore a good time to enter the market.'
Mr Nagel says property prices typically double every 10 years but during this period there can be periods of lower-than-usual growth.
'In my view, it's the investor that looks aha and isn't influeneced solely by current market conditions who will benefit the most,' he says.
Rental returns have remained strong in Adelaide, rising by 2.8 per cent last year, Mr Nagel says, and are tipped to rise well above inflation rates throughout the year.
'Although interest rates may rise this year, investors are finding that rental growth is outpacing any increase in the cost of their borrowings,' he says/
Real Estate Institute of SA president Gerg Nybo says the market is in prime condition for investors to make their move.
'SA has historyically low vacancy rates at the moment so there is a solid pool of tenants and properties are achieving good returns for people,' he says. 'There are more homes on the market at the moment so it really all adds up. Because there is more choice, hopefully investors can but at the right pricing and there is a ready pool of tenants.'
Mr Nybo warns anybody considering buying an investment property needs to consider it as a long-term investment. 'It's very important people don't think they will make a fortune overnight. They need to consider it over a long haul,' he says. 'We do recommend people receive independent financial advise from their accountant or financial planner and make sure they do their homework.'
Jude Allan and her husband bought their first investment property last month.
'We wanted to secure our retirement and always felt property was the way to go rather than the share market. Properties are cheaper to buy at the moment and we got quite a good deal on our apartment and it's in the CBD,' she says.
'They say property values double every 10 years and there are a lot of tax benefits, steady capital growth and rental income.'
Investors in the Adelaide property market have an opportunity to take advantage of lower prices and rising rens to build their portfolios, exports say. Ironfish managing director Damon Nagel says there is not doube savings can be made in the current market. 'Just like shares and other forms of investment, property goes in cycles and every investor is looking at the right time to enter and exit the market,' he says. 'There's no doubt the market has slowed significatly since the beginning of the year and some caution lingers in the air. I'd suggest that we're now at the bottom of the cyle and we will see signes of the property market recovering over the next 12 months - it's therefore a good time to enter the market.'
Mr Nagel says property prices typically double every 10 years but during this period there can be periods of lower-than-usual growth.
'In my view, it's the investor that looks aha and isn't influeneced solely by current market conditions who will benefit the most,' he says.
Rental returns have remained strong in Adelaide, rising by 2.8 per cent last year, Mr Nagel says, and are tipped to rise well above inflation rates throughout the year.
'Although interest rates may rise this year, investors are finding that rental growth is outpacing any increase in the cost of their borrowings,' he says/
Real Estate Institute of SA president Gerg Nybo says the market is in prime condition for investors to make their move.
'SA has historyically low vacancy rates at the moment so there is a solid pool of tenants and properties are achieving good returns for people,' he says. 'There are more homes on the market at the moment so it really all adds up. Because there is more choice, hopefully investors can but at the right pricing and there is a ready pool of tenants.'
Mr Nybo warns anybody considering buying an investment property needs to consider it as a long-term investment. 'It's very important people don't think they will make a fortune overnight. They need to consider it over a long haul,' he says. 'We do recommend people receive independent financial advise from their accountant or financial planner and make sure they do their homework.'
Jude Allan and her husband bought their first investment property last month.
'We wanted to secure our retirement and always felt property was the way to go rather than the share market. Properties are cheaper to buy at the moment and we got quite a good deal on our apartment and it's in the CBD,' she says.
'They say property values double every 10 years and there are a lot of tax benefits, steady capital growth and rental income.'
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