Top spots to buy real estate in 2011
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May 3, 2011, 3:33 pmYahoo!7
Property Professor Peter Koulizos dishes out his predictions on the hottest spots to buy real estate in 2011.
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The outlook for property in 2011 is subdued at best. Many areas are already experiencing a slow down and I can see this continuing for the remainder of the year.
Don't be surprised if national house prices actually fall this year. A fall in property prices across the market is a rare occurrence. The last time this happened was in 2008/09, as a result of the Global Financial Crisis. I can't remember any other time in recent modern history where this has happened.
Does this mean we should all panic and sell our properties before they drop in price too much? I say "No". Why not I hear you ask". The reason is that unemployment is at almost record lows and most people do not HAVE to sell. They may WANT to sell but there is no compulsion to do so as they have a regular and secure income which means that they can continue to make mortgage repayments. You need to take a big picture view of property. On average national property prices have increased by more than 250% in the last 10 years. Even if they drop by 5% this year, what's the big deal?
It will become a big deal if unemployment rises markedly and this is accompanied by sharply increasing interest rates. I can't see this happening any time soon, so just hold your nerve and ride out this trough.
A trap for young players is to buy something cheap when the chance arises in a buyers' market. Remember, just because something is cheap does not mean it is undervalued. If property is a medium to long term proposition for you, you need to consider the capital growth prospects over the next 5 to 10 years. Keeping in mind the buying opportunities at the moment and the capital growth prospects over the next few years, my hotspots for 2011 are:
- Brooklyn Park – units
- Christies Beach – houses
- Kensington – houses and units
- Largs North - houses
- Port Noarlunga – houses
- Thebarton – houses
Christies Beach and Port Noarlunga are still recommended places for a good investment.:)