Media reports of record prices and a possible “housing bubble” make me nervous about my own plans to purchase investment property. Have I missed the boat in terms of purchasing in Port Macquarie at a good price? What is your advice? Tony M, Port Macquarie.
A. Investors are continuing to flood into the property market, Tony. ABS data shows NSW residential investment loans up 59%, and it is not only retirees who are looking to property investment as a way of generating a higher return than bank interest.
Port Macquarie is experiencing strong investor interest, as you have probably noticed by the number of times the “SOLD” sign is being quickly followed by a “FOR LEASE” sign.
The supply and demand forces in place mean if you’re looking to invest at the moment, you’ll need to be prepared to compete for property. Fortunately, local demand for rental housing continues to be strong for a number of reasons.
When I think back to my experience in the industry during the boom years of 2002-2003 with double-digit price growth, it is clear the real estate market arrives at a peak, and then a retreat, before settling again. In Port Macquarie, the current growth rate of approximately 6% is sustainable due to population increase and solid investment in health and education.
My advice at this time for investors is to purchase at a price no greater than the median price for the area in which the property is located. Be cautious but not stifled, as sound investment should be planned for your long term benefit.
Equally I would suggest owners considering selling should look at getting property onto the market to ride this wave of activity, as the good times as a vendor will not last forever. Answers are general comment, and readers should always seek their own independent professional advice.
Send your real estate questions to firstname.lastname@example.org Greg Trembath is Principal/Licensee at Greg Trembath Real Estate. Licensed Real Estate Agent – Licensed Auctioneer.
This article was from issue 116 of Greater Port Macquarie Focus.