I don’t mean to dash your enthusiasm in property investment. But I hope you guys are aware that the reserve bank has put up interest rate twice towards the end of last year and is ready to increase further if the lending rate increase does not abate.

Also, the proportion of 1st home buyers is hitting a low of 13%, meaning a lot of properties are bought by investors. Now, if capital growth seizes and the demand from the property investors decrease. I think there will be a surplus amount of property in the market, meaning a drop in price.

Now, if you look at the November and December figures for new house starting, there is a signifcant drop. Also, the median house price in Melb and Sydney had dropped around 7% in Dec according to the Australian Property Monitor. I am also seeing price decrease in comparing sales price versus advertised price.

Good luck
Doncaster East