Spring 2019

Often as buyers we are influenced by economic and market perspective, typically by the opinions of others such as the media that steal away our willingness to buy and this point is supported by what we are currently hearing from our buyers. To ensure you have the complete picture, we believe our job here is to round out your understanding of the market knowledge and give you local statistics so your decision to buy or sell is one that is based on sound educated facts.

Firstly what helps you in your decision making is that real estate is a cyclical business; all of these markets have happened before and will happen again in the future. What goes up must come down. And more importantly what goes down has always come back up. We have observed over many decades now that home values will most certainly continue their long-standing trend of appreciation over time. For most Australians equity built up through mortgage debt pay down still remains a proven path to financial wealth.

The economic idea to buy and sell in our local area every 3-5 years and make a substantial profit on both ends is quite unrealistic in our towns. We’ve observed from some of our successful investors that real wealth comes from the combination of any appreciation plus debt pay down. Remember that you can’t sell high and buy low at the same time, for example as we move into a buyers’ market, you may get less from your sale, but be able to make it up with greater savings when you buy. In the end, home ownership is best viewed as long-term investment and is where you will get the biggest gains versus constantly buying and selling in the short term.

At First National O’Meara Kennedy we have observed decreases in enquiry and inspections over winter, in some weeks up to 50% less than the same time last year, however with Spring ahead of us this has plateaued and enquiry for the month of August was almost identical with 2018. We’re currently working with 10 first home owners and are thrilled that the government are assisting them in jumping on the real estate ladder; it’s a terrific use of government resources.

So what does this all mean for you today? The above information translates into buying opportunities to add to your investment portfolio or trade up? We have many success stories of people who have recently decided to buy and are very happy that they followed through with the purchase. We believe the current conditions for buyers are the best in years and encourage you to continue the conversation with our team. We are here to help.