Wednesday, May 26, 2010

Looking to buy Melbourne apartments? Now is the time

Looking to buy Melbourne apartments? Now is the time


Australian property experts have made bold predictions to the effect that apartment property values in Melbourne are bound to appreciate by 30% between 2009 and 2014. This is definitely music in the ears of those looking to buy Melbourne apartments. These sentiments are not based on mere rhetoric but rather on predictions precipitated by the erstwhile global financial crisis. Sharp drops in interest rates have dramatically narrowed the gap between mortgage repayments and rental incomes. These low rates (currently below 6%) and the accompanying low vacancy rates have jointly served to increase rental rates and thus incomes; certainly enough impetus to buy Melbourne apartments.
Despite these inviting sentiments it can generally be said that until recently investor confidence has been rather depressed, an issue that has contributed to restraints in price growth. The market prices have however been stabilizing throughout 2009 and it is believed that investors are only waiting for an assurance that property prices have reached their lowest and that growth is rebounding before they start to buy Melbourne apartments.
Another of the reasons making the decision to buy Melbourne apartments more enticing is the fact that new apartment completion forecasts for the city are on the decline. This is expected to be the trend for the next three years. The implications of these declines are certainly going to be felt in the rental rates which are forecasted to increase by between 5% and 10% annually. Further analysis indicates that demand will be accelerated into 2010 subject to the improving global economic outlook. This demand is in 2011 expected to translate into increased capital growth. Strong growths in price and increased investor demand over the following 2-3 years are expected to influence the aforementioned 30% growth in apartment property values.
What are the best places to look as you buy Melbourne apartments? This is an important question to ask since not all apartment properties are certain to make good investments. To prudently buy Melbourne apartments you need to consider the past growth of the area where the property is located. This location needs to have gotten past its correction and slump phases – it should be in the moving forward phase. Any property located in such an area has a good potential for capital growth and is apt for buying. Those thinking to buy Melbourne apartments should also be keen to spend sums below the market rates to facilitate the addition of value to their newly acquired properties.
(ArticlesBase SC #1586499)