House prices in Australia are to remain high due to high demand, mainly from population rise. Local demand from incentives such as baby bonus and first time home owners' grant and from migrants whose affordability range from mid to high end properties.
Sydney house prices have bucked the global downturn.
Many home seekers and buyers are disappointed as they had thought that 2010 would be a better time to get a bargain have miscalculated. In most Australian cities, waiting for a "good" time to buy a "cheap" residential property is akin to "waiting for godot" . It seldom happens, and it does, there is only a narrow window of opportunity. Some friends had bravely got into the market early this year and late last year when indications were uncertain if prices could go south. Turned out to be wise if you need a house and have stumbled upon one you really liked, go for it even if it means paying a slight premium, i.e., if mortgage repayment is not an issue. Sydney properties that do not have major faults are snapped up quickly usually higher than the original price bought.
It is a seller's market and tight for buyers. Ignore doomsayers and sadists. Whether it is "worth it" or not is not critical because there is a shortage of homes and people need to have a home over their heads.
With low vacancy and high rentals, renting is not really an option for many working families. Many tenants have complained of putting up with landlords' demands to be on the move all the time, but to no avail. Gone are the days when about 50-50 of Aussie urbanites were tenants or home owners.
Even though growth in sales is expected to slow, it is nevertheless still growing compared to most parts of the world, including the Asia Pacific markets, when you could see signs of speculative bubble forming.
Hopefully, the situation could be mitigated with increased supply with more building activity when developers could profit once again and financing becomes more relaxed as the economy picks up further.
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