Freer Property and Finance

With ANZ and Westpac predicting a near doubling of mortgage defaults over 2010, continuing strength in net migration gains and natural population increase the supply /demand disconnect is expected to persist. Many commentators anticipate a mini-sub prime in the sub $500k property space. Do you see opportunistic  investors rushing to fill the void with the withdrawal of FHB boost benefits?

Annualised, we are looking at around 12%pa growth in Australian property values. With the phasing out of the First Home Buyer Boost Australia is seeing an orderly transfer of demand from FHB's to investors. Do you believe that First Home Buyers have created a 'bubble' in the sub $500k pricepoint or do you feel that the current rate of growth is sustainable?

Interest rates may not rebound as quickly as many Australian commentators predict, due to slower company earnings coming out of the worst recession since the Great Depression.

Property investment is not without risk. Typically mistakes are made where investors are not clear on their financial objectives, inadequate research is undertaken or the services of prudent financial contacts and property professionals are not engaged .