2012 property prices

With changes to NSW stamp duty and turmoil ruling the world’s finance markets, 2012 looks like being another uncertain year for the inner west property market.

Its been four years now since the start of the global downturn and although Sydney only felt slight tremors in its property market, recent reports are saying that house prices have bottomed out. So what should prospective inner west home buyers and renovators be thinking about in 2012?

Well it is only an opinion, but I think if you’ve done your homework and can finance the repayments, there’s no reason why you should sit on the sidelines and watch the housing market whirl around you hoping for further price drops. Equally, if you already own a home and can afford to finance the costs associated with building, then 2012 is as good a year as any to renovate.

Think about it, there’s a lack of new dwellings being built, which means there are a lot of builders lobbying for work…in theory, this is a great time to contract building services. Hell, you might even get a good deal!

But what about this year’s risks? Well, if like me you bought your first home in 2009, then apparently there is a high possibility of defaulting on your mortgage, which could assist in bringing the market down further. A contradictory warning? Yes, but worth heeding all the same.

I hadn’t heard about the ‘rudprime’ effect before, but then wondered, should I panic? After considering it for a while, I decided not to. After all, interest rates are only just starting to head south again – closer to what I borrowed at – and most of us (hopefully) factored in a buffer at the time of securing our mortgages.

So clearing away the gloom and doom, I’d like to make 2012 a year to remember by putting my personal stamp on something great. There’s no time like the present to renovate a kitchen or bathroom or even secure the property that you’ve had your eye on for a while.

Also, if the property market is still going down when will all the sideline buyers jump back into the market? All at once I’ll wager, which only points to one direction for house prices and building costs.