Market forces are aligning to produce arguably the best property investment conditions we have seen for some time, Property Investment Professionals of Australia (PIPA) chair Ben Kingsley has claimed.
“The current environment is bringing a new wave of investment activity and great opportunities for financial services professionals including brokers,” Mr Kingsley said.
“We saw four cash rate cuts of 125 basis points throughout 2012, bringing the official cash rate in 2013 to a historical low of three per cent and, as a result, we’re seeing an abundance of very attractive home loan rates.
“Combine this with very strong rental yields and low vacancy rates across many property markets, and the impetus to invest in property is stronger than it’s been for quite some time.”
New figures released from the Australian Bureau of Statistics (ABS) this month confirm that investment activity is beginning to gain momentum, with the value of investment housing commitments (trend) rising 1.5 per cent in February 2013, or $115 million, Mr Kingsley said.
Moreover, property prices are beginning to see some upward growth as the property market gathers pace. According to RP Data, dwelling values across the combined capital cities recorded a 2.8 per cent rise in the March quarter – the strongest result seen over the past three years, and a good indication the market is on its way up.
“And to top all of this off, Australians’ mushrooming interest in property investment via self-managed super is only going to add to the opportunities in this space,” Mr Kingsley said.