Australian Property Investors Won’t Invest in 2009

Potential Australian property investors have been delaying purchases in the country thanks to the Australian government’s grant scheme for first time buyers.

According to a recent poll, around three quarters of Australian real estate investors have said that they are waiting until the first home owners scheme expires in December before they invest in any more property.

The major reason cited is that the home owners grant has increase competition significantly meaning the market is crowded and house prices are being artificially boosted. Because of this, many property investors are getting their finances in order and waiting until the market becomes less crowded. Most of the real estate investors have said they are planning to buy property in Australia again in either 2010 or 2011.

Part of the problem is falling rents. Many renters are looking to purchase property and vacancy rates in some areas in Australia are said to have doubled – leaving property investors with no income on their properties. The higher vacancy rates are also pushing down rental prices pushing rental yields down.

When the home owner scheme expires, it is hoped that both the rental and the housing market will stabilise and Australian property investors will be able to better predict the return on investment on their properties leading to more confidence and greater numbers buying property and real estate in Australia once more.

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