property- examples of winners, page-25

re: property- examples of winners...taxing I have worked in property sales for quite a few years and sort of get a feel for things that are happening price wise.
I expect unit prices to seriously take a step backwards in most capital cities . This will mainly happen in older complexes as they will be the ones that are hardest to rent . Newer units in modern complexes will not be hit as hard but many of these tend to have poorer returns anyway .
As for houses it is a funny situation at the moment . I`ve spoken to builders that we deal with and they are happy . Interesting to note that many of these builders can build a house cheaper than many established houses are for sale for.
At the moment a lot of property we are getting has only got about a five percent rental yield which is at least a couple of percent below what I advise clients to buy into . So for those investing that may be cash strapped this may not be the best time .
I feel the top end of the market will not be affected as bad though and for those who hold beach front land dont do anything stupid and sell it .
Another issue is that the rise in property prices has been a wind fall for local councils and for many cash strapped people this might be the final straw.
Where is the next growth area I would look to north Queensland as rental yields are high and with projects going on up there there should be some strong growth over the next few years .
All that said I can say that property should be flat in general over the next few years so be very careful with what you buy and dont expect massive returns seen in the last few years.
For the astute investor I will say that you should be able to walk into real estate office in the country a find property atleast 10% below fair market value . Good property is out there it is just going to be harder to find.
One final tip for those with a fair bit of cash I would be taking a good look at hotels in Queensland but only ones with poker machines . I have been doing a lot of calculations on these properities at the moment and many are coming in way under value.