Property in Australia’s capital cities could be ideal investment

A leading overseas property
expert believes that Australia presents the perfect time to snap up homes in the country’s
state capitals.  Nick Marr,
director of international real estate portal property HomesGoFast.com highlighted
recent figures from RP Data – Australia’s number one provider of property
information – which shows that prices have fallen to a six year low in
Australia’s capital cities.

So, if you’re thinking of buying
property in one of Australia’s major cities, now could be the perfect
time.  Keep reading to find out
why.

Prices of homes in Australia lower than a year ago

The figures from RP Data show
that the value of homes in Australia’s capital cities fell by 1.4 per cent in
May 2012.  This means values are
down by over 5 per cent since this time last year.

Melbourne was the worst
performing location with the data showing a 2.7 per cent fall in property
prices in May and an 8 per cent fall over the last 12 months.

Mr Marr from HomesGoFast.com
said: “Even Sydney – Australia’s largest city – showed a decline.  The RP data showed that house values in
the New South Wales capital were down by 1.2 per cent in May and 3.6 per cent
since May 2011.

“Values in Perth fell by 1.7 per
cent in May while house prices in Darwin fell by 2.4 per cent.  This is great news for anyone looking
to buy property in Australia as values in larger cities are lower than they
have been for some time.”

Despite recent interest rate cuts
by the Reserve Bank of Australia, the housing market has not responded to these
cuts.  RP Data’s research director
Tim Lawless told News.com.au that ‘much of the weakness in real
estate values was in detached housing rather than apartments’.

He said: “It is clear that the
market is becoming increasingly price-point driven with stronger performances
across more affordable markets.”

Local buyers may also start to boost the market , online poll by mortgage provider Loan Market
found 51 per cent of respondents were planning to invest over the next
12 months, while a further 37 per cent were keen but want to be sure
their jobs were secure.

Only five per cent of the 786 people surveyed
had no plans to buy property, while seven per cent said they would
rather buy shares, the poll showed.

Loan Market corporate spokesman Paul Smith
said 75 basis points worth of official interest rate cuts by the Reserve
Bank of Australia (RBA) over May and June had helped restore
confidence.

By Homesgofast.com

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