Published on 22 October 2012 the Commonwealth Bank / Mortgage & Finance Association of Australia Home Finance Index has found that first home buyers are at their highest levels of financial confidence since May 2011 with 75.8 per cent of people believing house prices would grow or remain stable between now and the end of the year.
According to a national survey about 63 per cent of first home buyers in Australia say it is a good time to buy because interest rates are down with the Reserve Bank of Australia lowering the cash rate to 3.25 per cent at its October board meeting and economists forecasting further interest rate cuts in the months ahead.
Respondents in the survey under 29 years of age are the most optimistic of all age groups about the future growth of property prices, with 45.9 per cent expecting price growth from 2013 onwards.
In the Balmain/Rozelle region we are seeing the effects of this confidence with sales at the lower end of the market going strong and more properties are required to meet the demand in the lower entry price range.
1. Time your entry to the market to avoid the Christmas period and the end of financial year period as many tenants are not looking to move during these times. Generally around October and March are the times when properties are in highest demand.
2. Decide on a lease term that suits you. If you agree to a fixed term it is extremely diificult to get a tenant to move out earlier. At the same time you don’t want to keep having to renew a lease or find new tenants every few months so always aim for the maximum lease term that you can commit to at the time.
3. Start advertising the property 4-6 weeks prior to the date that you intend to move out. Most tenants are looking for properties 3-4 weeks in advance so this will ensure that you minimise vacancy between the date you vacate the premises and the date the new tenant moves in.
4. Organise professional cleaning & carpet steam cleaning prior to leasing the property. This way the tenant can’t complain about cleanliness and you have a standard to which the tenant must return the property at the end of the tenancy.