The slump is over This stage of the property cycle, at the tale end of the slump in Melbourne, Brisbane and to a lesser extent Sydney, is a great time to buy an investment property. There is less competition for properties which gives you the ability to negotiate the right price. You will have time to think and reasoned investment decisions, without all the market hype and urgency that prevailed during the boom. As a property investor you must have a long term focus, because in the long term property returns will be excellent and you have to learn to disregard the "market noise." Don't get scared off or upset by the news in the papers, or concerns about interest rates or the economics or recessions or inflation. While all these factors affect the property market in the short term, in the long term property prices just keep going up and up. If you buy in the right areas of Melbourne, Sydney or Brisbane your property should double in value every 7 - 10 years. Looking back at historical property data, statistics showing the Sydney property market usually recovers first after a property slump, followed by Melbourne 9-12 months later. Things are different this time around, with Melbourne over the worst of its slump with Brisbane not far behind. Sydney should pick up later in the year. Usually properties in the more affluent suburbs increase in value first and this confirms what I am currently seeing in the Melbourne with strong owner occupier demand pushing up property prices in the middle ring suburbs (4 -10 km from the CBD.) The South East Queensland market should also perform well especially established apartments which are selling for a considerable discount to new apartments. So my recommendations for this year are:- - Take advantage of the weakness in our property markets and buy a property now - but only if you can purchase that property below market price. - Research prices and growth opportunities carefully. Not all properties will perform well in the short term. You have the buy the right property in the right area. - Buying a well located property below market price and adding value to it through refurbishment, renovation or redevelopment, will be the best investment you can make. 24th April 2006 Source: M. Yardney | 
