Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Great Signs for Market

Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Great Signs for Market

Article excerpt

THE property market is demonstrating its most positive phase since the onset of the GFC, according to the owner-principal of Amber Werchon Property.

"There is a clear and evident optimism in the air from both buyers and sellers," Amber Werchon said. "And combined with record low interest rates there has been a marked increase in activity, and therefore transactions.

"Throughout the GFC and even in recovery mode there has been an adjustment in seller and buyer expectations regarding price.

"Sellers were initially still conditioned to the very high prices of the boom, and buyers were educated via media and other resources that the times were different and they were seeking value.

"Things are moving into equilibrium now whereby fair and good prices are being achieved, but there is still value and affordability in the market ... this is good for all.

"Emotion will always be a factor in non-investment purchases, but certainly investors are strategically purchasing on the basis of location and yield ... with interest rates so low, property returns are more attractive, and then there are the tax benefits of depreciation and negative gearing to take into account.

"Positive gearing is also a factor for some investors as affordability has increased."

Central beachside suburbs such as Mooloolaba and Alexandra Headland always remain a solid investment, Ms Werchon said, even in a more depressed market, as they are desirable places to live.

"As the market picks up, which we are experiencing now, stock is tightening in these areas and that has already started to impact on price in a positive way for sellers.

"Because stock has tightened up it's still a great time to sell as there is less competition so the likelihood of a good price and shorter days on market has significantly increased.

"Auctions continue to grow in popularity on the Sunshine Coast as a proven method of achieving a result in a set time frame, and at the very least assisting to price a property to meet market expectation. …

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