Tuesday, March 18, 2008

Investors in the market

Whether or not there's another rate rise or two this year - and the Reserve Bank obviously hasn't made up its mind yet - it'll be relatively short-lived.

In which case investors, attracted by rising rents, might wade into the market.

This will be helped by the fact that Self Managed Super Funds are now allowed to borrow for property so long as they structure it in the same way as an instalment warrant.

Currently, house prices are dropping in the mortgage stress areas of Sydney and Melbourne and the Financial sector is feeling very shaky and uncertain of it's future.

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