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According
to ooba, (formerly MortgageSA) slower property market conditions present
the best buying opportunity in years for first-time buyers and upsizers.
Saul Geffen, Chief Executive of ooba, says that while there are fears
in the property market from higher interest rates and a slowdown in
price growth, buyers should recognise that these conditions are actually
positive for those wanting to get on the property ladder and those looking
to upsize.
Its a buyers market now out there, with much more
realistic sellers. But the current level of fear in the property market
is overblown as the situation is temporary and directly linked to interest
rates. As soon as interest rates come down, which is expected in the
last quarter of this year, price growth will accelerate with demand.
After prices soared in 2003 and 2004 in particular, price growth
is now falling into single digits but likely to pick up next year and
especially towards 2010 when we may well see increases of over 15 percent.
Like all investments, savvy people with a longer term time frames
capitalize on these softer times to make purchases.
Geffen notes that first-time buyers have had a tough time of it of
late but now they have more power and should use it to negotiate a good
deal.
However, if you want to move onto the ladder, good preparation
is important so you can move quickly. And that means getting pre-qualified
for a home loan and keeping an eye on the market in the area you want
to move to.
The tip is to be well researched and haggle hard.
Geffen also points out that it is also much more advantageous to move
up the ladder in a slowing market, something that existing homeowners
often overlook.

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