Buyers Agents urge caution as property market heats up

AUSTRALIA'S leading professional body representing buyers agents is urging home buyers to be cautious amid a surging market, escalating interest rates and global financial uncertainty.

Real Estate Buyer's Agents Association of Australia (REBAA) President Mr Byron Rose said there were definite signs ‘storm clouds were brewing' over Australia's heated property market and encouraged buyers not to financially over commit themselves.

"In these uncertain economic times with the market moving north and the possibility of growth slowing, now more than ever, buyers should be seeking independent advice from accredited professionals to secure the right property, at the right price, under the right terms," said Mr Rose.

"With interest rates for most borrowers remaining lower than average, the property market continues to show strong signs of activity, however, with further rate rises predicted and the aftermath of the global financial crisis lingering, it is important for buyers to keep their composure and not let emotion blind reason."

"While there is negative speculation brewing about Australia's so-called housing bubble, there are still many positive signs about the economy with Australia's housing shortfall predicted to continue for the long-term."

Mr Rose's comments come in the wake of yesterday's reported warning from US investment advisor Edward Chancellor that Australia is in the midst of an unsustainable housing bubble and today's sixth interest rate hike since October.
Mr Rose said the concept of buyer's agents emerged as reputable agents recognised that whilst selling agents were on the side of sellers, there was no-one looking out for buyers.

"It makes sound financial sense to consult an expert when making what is for many people, the most costly investment decision they are ever likely to make," said Mr Rose.

"Only independent, accredited buyers agents who are paid by the buyer are committed to finding quality property for their clients, and have access to all the information available on the properties for purchase in the market."

Source: REBAA website, 4 May 2010.

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