By – National Building Solutions

Recent factors affecting the property market.
– Interest rates on hold in the short term.
– Rental demand steady for quality property.
– Four bedroom median house price for Sunshine Coast: $480,000 up from $452,000 from March 2009.
– Demand for housing continues to exceed supply.

Long term outlook (7-10+ yrs):

Residential property within 5 -10 Klms of both anchor and complimentary infrastructure, is expected to produce double digit growth rates in the long term.
The probability of interest fluctuations will have a short term “stall or surge” impact on sale numbers and price activity. The overall outlook from the majority of analysts is positive, with property identified as the lead sector for economic recovery.

Australian residential property remains a staple investment vehicle as the global financial markets continue to look for security of bricks and mortar.

As credit liquidity has become increasingly tight, property remains almost the only security and market sector that banks are confident (albeit cautiously)

Median house prices continue to show steady growth across all Australian markets. From this we can identify where to draw the line on capital commitment and overcapitalisation.

When the supply and demand pressure that South East Queensland is continuing to experience is added to this picture, limiting an investment in residential property to a 4 bedroom home under the $480,000 price point makes good sense.