10 Oct 13
The Noosa market remained steady this month, sales numbers were consistent, selling at previous price levels. In other words we are not yet experiencing a consistent lift in prices although the first signs are there.
Buyers are responding to the low interest rates, many out there doing their homework. The realization that the good buys are drying up fast will soon be upon buyers, we expect a shift in activity when this occurs, likely to be around the early to mid November and run into Christmas. Availability is being impacted now, sellers wishing to sell and move interstate should be acting now before they get priced out of southern markets. Those looking to repurchase in Noosa should move while they have buying choices and the market is a better place to sell within. Owners looking for capital gains should be thinking 3 year hold, settling back and waiting for the uphill ride.
In-room auction results were poor over September; this is not a true reflection of the market as a whole, but rather the process or choice of property taken to these events. With correct pricing, many of these properties will sell over the coming weeks, if not they could languish. Moving forward towards summer, we expect the market to intensify as more and more buyers come out of the bouyant southern markets, predominantly the inner city markets. Noosa continues to be good value and offer excellent potential for growth over the long term.
Recently I was asked about investing in Noosa property through self managed superannuation funds. It is important to seek your accountant's advise when considering such an investment. For those that don't know, if you have a self managed superannuation, you can now borrow money with in your super, there is a criteria you must meet and a financial planner or accountant can advise you on this.
A large portion of self managed super that is invested in property, is invested in commercial property, this is not as simple as when borrowing for residential, as there is a need to set up a bare trust and the banks won't usually lend more than 60% of the purchase price. The cost and complications of setting these up are an eye opener for those doing it for the first time, many accountants and solicitors are not fully across the process which can complicate things, the average time it takes to get the finance approval through is at least 30 days, so it takes due consideration before embarking on.
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