New housing boom tipped for 2009
March 15, 2009 - 10:49AM
Having record low interest rates, a shortgage of new home construction and the boost to the first home owners grant is a great mix for a new house price increase.
Firstfolio chief Mark Forsyth believes that a new housing boom could be as early as the second half of this year.
"If you combine the last rate decrease with news that there's going to be another decrease, rental yields going through the roof, shortage of supply of property and the first home owners grant, it's a perfect storm of a positive nature," Mr Forsyth commented.
As home loan approvals for first home buyers continue to increase it is feared that there won't actually be enough houses on the market in good transport corridors, being close to all facilities.
As rents continue to rise and interest rates continue to fall this will then cause a greater number of consumers to start looking at the option to buy their home.
