If you are thinking about selling your property or purchasing a property in Merimbula or Tura Beach, it helps to know how to predict the trends in the area. Knowing when to put your property on the market or when to lock tenants into a long lease is easier when you understand real estate market trends. The professionals evaluate trends by assessing the “inventory “in the marketplace. Inventory is simply the quantity of goods available within a particular market. In this case, it’s the real estate market, so you need to assess the amount of suitable property available in Merimbula and Tura Beach.
What Makes Up Property Inventory?
In general, inventory will include not only the primary goods but also substitute goods. For example, if you are buying mandarins for children’s lunches but none are available you may substitute bananas, because they are also fruit. Property Investors need to assess not only how many other rental properties are available in the real estate market, but also the number of cheap properties for sale. This is because another investor could purchase one of the cheap properties and put it on the rental market or a potential tenant may decide to purchase a cheap property rather than rent one. The time to invest in property is in a market where inventory is dropping because prices will eventually rise. However, when inventory levels are increasing prices may fall, so it makes sense to lock in tenants or put your property on the market early in the trend.
Interest Rates & Investors
The Reserve Bank has kept the cash rate at 2.5% again in April, for the eighth month in a row. The RBA Board is maintaining an overall policy of stability by keeping the cash rate low. RBA Governor Glenn Stevens said the steady course from the RBA is expected to support demand and help growth. This stable interest rate environment has giving buyers further confidence to invest in residential property.