Last week I spent some time with Dr Andrew Wilson, an advisor to the reserve bank and senior economist (I have attached his presentation for you information). He talked a lot about the strong position the Australian economy is in, the difficulties that the strong AUS dollar is causing our coastal communities and the fact that the Carbon Tax may be a storm in a tea cup.
We have seen many interesting indicators in the market. We saw an aggressive push from buyers up to $1mil. As a single office we sold 27 properties in that price range in the month of May.
There was also some strong sales in the prestige end. We had a great response to our Courier Mail advertising with over 500 people through our Press Media advertised properties.
Rental enquieries have remained strong. There was a slight pause at the end of May with enquiery dropping off, but it was just a hiccup and things are back to their previous solid form.
All in all the word from the experts is that we should be back at 2010 prices by the end of the year. That would show a 5% capital growth this year, against the 5% decline last year.
I rarely make this style of call but this is definately a solid time for investing. The market is showing indicators that the bottom is behind us, the predictions are the banks are unlikely to see further rate reductions and rental returns are on the rise.
With next months stamp duty concession likely to see a push from home owners, now is the ideal time to purchase a 2011/12 invetsment property!!