"In my 28 years of real estate, it has become very clear that timing is the most critical element" says Paul Castran, Director and CEO of Castran Gilbert.
Buy at the bottom, sell at the top.
As everybody tells you, unfortunately there is no one walking the street ringing the bell at these two times.
In my opinion, the bell is ringing for people to buy.
Enquiry from developers to buy sites is unprecedented. The “smart money” is getting ready.
Consider the following economic data. It is overwhelming and compelling.
Employment is the strongest it has been in 40 years.
Nett migration into Victoria in the past 12 months is 82,430.
Residential vacancies in the inner ring below 0.5% with economic forcaster BIS Schrapnel predicting a 50% increase in rents over the next 5 years.
Dwelling starts have plummeted to the lowest level in some time.
The papers are now plastered with news of an impending interest rate cuts.
A new power in the market is the real cash money of superannuation which is accumulating at a rate of 600 million per week, every week.
The recent instability in the share market coupled with the volatile petrol prices and increased interest rates, have formed the basis of every news article impacting the real estate market.
Fortunes have been made by purchasing inversely with the cycle.
In the inner circle of Melbourne, it is crystal clear that the market will gather pace in the future.
Some-one buying off the plan today and settling in a year or so, will enjoy the following benefits at settlement.
1. Very minimal stamp duty
2. An increased rental market
3. Decreased interest rates
4. Pressure of increased demand.
When there are more people trying to buy a product than what is available, the price must rise.
You only have to look at the massive escalation in rental values to prove my point.
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