13 May 2010
Reports show that home loan approvals are decreasing, which comes as no surprise with increasing interest rates and decreases to the first home owner’s grants. With that being said, we’re seeing an increase in property auctions
in Casula and Liverpool which is a great sign for real estate.
There could be a number of reasons for this.
Investors who traditionally traded in mining stocks are now moving towards real estate due to confusion surrounding the new Resource Super-Profits Tax.
Higher yielding rental returns are enticing seasoned and new investors to purchase more rental properties.
Pre-approved loans from 2009 for people still looking to purchase real estate are pushing people towards attending auctions, increasing their popularity in some areas.
The rest of this year will provide interesting reading as we continue to watch what happens with auctions in the Casula and Liverpool real estate markets.