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Rates Back to 4.25%, Invertors Starting to Return, Great Time to Upscale

Tuesday, 6th December 2011

The official cash rate was cut from 4.5 percent to 4.25 percent at the central bank's final meeting for 2011 today.

At Vitale Fine Properties we are experiencing significant demand for quality rental properties. Massive multinational companies such as Chevron are prepared to pay a premium to secure accommodation for their employees. This is having a trickledown effect in all echelons of the rental market and as such, investment properties are starting to look much more attractive on paper.

With demand for rental properties high and interest rates gradually pulling back, there are some great buys starting to pop up. It’s now becoming possible again to single out neutrally even positively geared residential properties. This has been virtually impossible to achieve at a standard 80% LVR for the past five to ten years in the greater Perth metro area.

The fundamentals are looking good for the future, the only thing holding Perth back is some negative sentiment caused by European economic uncertainly. Despite this however, some investors are starting to return to the market, particularly those taking a longer term view.

As well as there being some great buys in the lower end of the market, ‘big ticket’ stock items have experienced considerable consolidation in pricing making it a great time to trade up into one of these higher price properties. We are placing an entry level Peppermint Grove property on the ‘Auction block’ this weekend. The land component is just shy of a quarter a acre at 987sqm. The home is a great party house with the kitchen and living zones opening up beautifully to the outdoor entertaining areas. It will be open from 10:30AM, the Auction kicks off at 11AM. See the ‘For Sale’ tab on this website for more information.

Onwards,

David Vitale.