Here’s my regular 3 minutes of good news property investment weekend reading
1. House price outlook
Spruiking house price surges isn’t really our bag; but the Property Observer story this week about a possible surge of 15% in house prices may carry some weight, by virtue of the fact it comes from someone with a bit of street cred.
Australian Financial Review economic writer, David Bassanese – a 20 year economic veteran – expects interest rates to fall by 100 basis points over the next 12 months (taking the cash rate to 2.5%); and he says house prices could rise by as much as 15% between now and late 2013, as rate cuts improve affordability.
Now, we don’t necessarily think that falls in interest rates have the impact as they once used to – see here – nor that they will actually fall that much; but we sure do like what Bassanese has to say.
2. Homebuyer confidence returning
This week Property Review reports that home buyer confidence has reached its highest level post-GFC, according to the Genworth Homebuyer Confidence Index (HCI) – and is up in all states, except Tasmania.
The Genworth HCI shows sentiment at 98.4, up 2.2% since March 2012, with 49% of those surveyed believing now is a good time to buy a home.
CEO Ellie Comerford said the index shows home buyers are far more positive than much of the current public debate centered on the economy.
3. 7 Ways To Make Customers Love You
Inc. com says that if you follow these rules, your customers will return over and over again. It looks like some of these might work well at home, too!
- Make building the relationship more important than making the sale.
- Create opportunities for the customer to buy, rather than opportunities for you to sell.
- Have meaningful conversations and never give a sales pitch.
- Be curious about the customer as a person and let the friendship evolve from that.
- Don’t try to be a hero who swoops in to solve the customer’s problem.
- Believe in your heart that you and your firm are the best at what you do.
- Deliver exactly what you promised to deliver, no matter what.
Matusik Pulse Poll
Reminder – to contribute to our current Matusik Pulse poll. What type of apartment would get the best gross rental yield? Thanks for passing on your opinion – just click here to tell us what you think. See the results here in coming weeks.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 550 new residential developments come to fruition and writes the weekly Matusik Missive. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
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