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Property to bounce back in 2012

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Your Investment Property | 17 Jan 2012, 12:00 AM Agree 0
Australia’s property market will return to positive territory on the back of last year’s interest rate cuts, it has been predicted.
  • Brian | 17 Jan 2012, 11:39 AM Agree 0
    A few if and buts there, but I agree with the overall sentiment. I don't expect great things this year, but with any luck we'll see a turnaround.
  • Rog | 17 Jan 2012, 11:48 AM Agree 0
    I think interest rates will be important. I've heard some people say they expect three or four more cuts this year. I think that will persuade a lot of people to get back into property.
  • Allen | 18 Jan 2012, 09:54 AM Agree 0
    You are nuts? I am from the United Kingdom and if the rate cuts start your prices will fall. Think about it people are desperate to buy a home when the prices are rising but if there falling they will wait and especially if your predicting even further rate cuts later in the year. Good Luck
  • Nige | 18 Jan 2012, 04:09 PM Agree 0
    I'm not sure if the UK and Australia are comparable markets. We've got mining, and are more reliant on Asia than Europe/US. That said, if the interest rate gets as low as it is in the UK (0.5%!), the RBA won't have much wiggle room to react to the economy.
  • Harry | 19 Jan 2012, 05:11 PM Agree 0
  • Shane | 25 Jan 2012, 06:17 PM Agree 0
    Allen, I disagree. In Australia I believe if rate cuts happen our house prices will rise. Has every other time so I can't see why it would be different this time. House prices are controlled by what the banks are willing to lend (amongst other things). Interest rates come down, banks allow people to borrow more as their payments are less, house prices rise.
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