In light of this week’s surprise announcement that the Reserve Bank of Australia slashed a full 1.0% off interest rates - the biggest single cut in 16 years - the four major banks have confirmed they will pass on 0.8% of this cut to borrowers. This means significant relief for many.

With global economies continuing to haemorrhage, this may only be the beginning of interest rate reductions; signalling upward pressure on property prices is not too far away.

As money gets cheaper, rents continue to increase and the property and rental shortage worsens in many Australian capital cities, it stands to reason that property prices will start to rise.

This makes NOW opportune buying time.

In certain sought after areas in Sydney, rental yields are pushing up towards 6% - a return not seen in the Sydney market for many years.

For the first time in years, Sydney is now a BUYERS market.  Having said that, good property remains hard to come by and as such it is not trading at a discount!  And the reason for this none other than supply and demand.

Property in sought after areas – close to the median price, city, shops & cafes, transport, beaches etc is always in high demand regardless of the economy.  Typically these are the areas which do not have a surplus of land available to just “build more” and hence the shortage of supply is what keeps prices strong and less volatile – regardless of economic uncertainty!

Recent history shows us – now more than ever if you choose to invest in property you MUST buy the RIGHT property in the RIGHT location if you wish to maximise your returns while minimising risk.  Previously many were of the opinion that a rising tide floats all boats, however I think many would agree, this is no longer the case.

As stock markets around the world continue to slide, more and more people will rightly or wrongly snatch and run and look for other “less volatile” investments in which to  invest their money.

New legislation in Australia permits leveraging of superannuation funds to purchase property; combining this with the general property shortage, and increased rental yields  -  and its become obvious that the next property boom is fast approaching – particularly in the Sydney market; which has been flat now for around 5 years.  This means more buyers will flood into the property market, and buying at a “good” price will become increasingly challenging as buyers start to compete, thus forcing prices up...

So...why wait!  It’s important you move ahead of the market...if you wait to move when everyone else does, you will be minimising potential returns.