It is nearing the end of 2011 and what a year it has been. With the world economies seeming ‘to be at 6;s and 7’s there really is no feeling of security in anything much. But is that just at a superficial level?
When looking around there has still been more movement in the real estate market in past few months than there has been in earlier months of the year but not sufficiently so that we would think that the real estate market is on the improve.
In saying that with the second interest rate cut again this month this surely should get the real estate market rolling. Some in the real estate field believe that the cities could even increase as much as 3% next year and that is not bad considering how long they have been sliding around the 0% growth area for such a long time.
When interest rates went up in the earlier part of the year the banks and their followers were indicating that it was most unlikely we would see an interest rate cut for several years, but no, we have had two in the more recent months. This confirming the fact as mentioned above that the economy has been all over the place.
The banks didn’t exactly get too excited about handing on the interest rate cut and one would wonder if there is another early in the New Year whether they actually would. This again makes one think, “why not get in now while the interest rates are down a little?”
There are a lot of tired looking properties out there. Not that they are in terrible disrepair but they have not been kept up to a top standard of maintenance either. This could be your chance to pick up a bargain, do a bit of a facelift and increase your rental return.