Some wit in the UK pointed out to me once that the Queen probably travels the World thinking that it smells of new paint.
And we have all seen the frenzy of activity as a place is being spruced for the visit of a dignitary. Surprisingly, there is a strong link to the property market.
Let’s say a fictitious town called Kickacanalong has a celebrity visit, there is a hive of activity for the visit. But, once she has left, people are left wondering what to do with themselves.
It’s now clear that the investor-fuelled property boom (of Sydney) has peaked. Where people once made a mozza by flipping properties in a rising market, many are now left wondering what to do.
Here are six ideas.
Enjoy the Coolth
Variable rates have come down and look like they will come down further. This is going to be beneficial for household budgets who will have more cash in their pockets.
With a slowing property market, the banks have to find new ways to compete for business. Many are now offering up to $1,500 to switch lenders (and they will give you a better rate too).
Get on the Dog and Bone
Most, but not all, lenders have passed on all the Reserve Bank’s cuts. If your bank has not passed it on in full, call your broker now to see if he can get you a lower rate.
What would Richard Gere do?
Richard Gere was once in a film called Arbitrage, which is about playing one market off against another. If you have been blessed with massive growth in equity in your property, now may be tap into this growth and use it as a platform to invest interstate where growth is more likely to occur.
Enjoy the Space
We have all heard the stories of Sydney and Melbourne first home-owners being outbid by investors. Well, now the shoe is on the other foot; rental yields are low and some banks are no longer lending to overseas borrowers. This may well be the time for people looking to buy their first place.
Use up the spare paint
The area has been spruced up by investor activity, why not enjoy the afterglow? With interest rates low a renovation will be more affordable and a trip to Bunnings won’t be so painful. Rather than spending every Saturday going to auctions maybe you can stay at home and put in a new kitchen or bathroom.
Now there’s a job fit for a King.