Snapping Up a Premier Piece of Real Estate
Last year, low interest rates and the possibility of obtaining an affordable home loan appealed to investors. At the same time, owner-occupiers exhibited reluctance to sell while first-home buyers were hesitant to enter the market.
In 2012, property markets in most capital cities of Australia were stalled due to: uncertainty with the global economy, inflated property prices, minimal business confidence and a commitment to household saving.
A report released by JP Morgan in October alarmingly revealed that many Australians are paying off mortgages on homes that are now worth less than the price at which they were purchased. Queensland is the worst affected Australian state, while New South Wales home owners are least likely to be affected by the diminished worth of their properties.
Positive news exists for some sellers, buyers and landlords. In Sydney’s Cremorne Point and in the mining town of Port Hedland, Western Australia, rents of more than $2000 per week were being paid.
In terms of sales in 2012, significantly discounted properties in Sydney were eagerly seized by the ‘super-rich’. Palm Beach property ‘Kalua’ was sold for $22 million and, although this price was reduced by $3 million, this was the most expensive sale for 2012.