Home buyers and investors are being warned not to over capitalise on property as indicators show the market is about to turn.
Saturday, May 15th 2004, 11:10PM
by The Landlord
PSIS chief executive Dr Girol Karacaoglu said all indications pointed to a property market which had reached its peak across the country.
He warned about buying a property now for investment or over-capitalising on home mortgages.
Dr Karacaoglu looked to three key indicators to predict the turn. The number of days or weeks a property was on the market had risen; prices had stabilised; and rising interest rates.
"In the next year or two I think the property market will slow. The driver is the rising interest rates. . .
"The only debate is whether the market will come down or stabilise."
Dr Karacaoglu said people with mortgages on houses around the $400,000 mark would feel the pinch of interest rates more than those homes valued between $100,000-$300,000.
Dr Karacaoglu said first home buyers should still try and get on the property ladder. But those looking at a second rental property or investing should be more cautious.
