1 May 2009

Affordability returns to Balmain market

Low interest rates and the First Home Owners Boost have driven a return to affordability in Balmain, with agents reporting excellent sales results.

The most recent example was 3 Bridge Street, Balmain, which sold for $642,000, which was $82,000 over the anticipated price.

The tiny parcel of land, situated close to Balmain shops with water glimpses, attracted 14 registered bidders and sold to a young first home owner couple who had been renting in Marrickville. The couple fought off five other bidders to secure the property. They plan to demolish and re-build, subject to council approval.

Raine & Horne CEO Angus Raine said that if buyers did the calculations, they would find the price achieved put a value on the land of $6000 per square metre.

"This is an unbelievable result. There's no doubt the First Home Owner's Boost is adding massive heat to the market, but it is not only first home buyers who are jumping on the property gravy train," Mr Raine said.

Proprietor of Raine & Horne Balmain Vincent Montano said the market had become extremely buoyant in the low to medium price brackets.

"I believe affordability has come back into property. Interest rates are low at around 5% so buyers looking to upgrade are discovering now is the time," Mr Montano said.

This had resulted in a swing back to home ownership because it was cheaper in the long run to buy in Balmain rather than rent.

Mr Montano stressed that if homebuyers were looking to buy a property in the median price range around the $800,000 mark, they were only marginally worse off taking out a mortgage compared to renting.

"Plus there's the added bonus of capital growth. Within about a 6km radius of the CBD I would be extremely surprised if property prices didn't double in seven to eight years, so buyers can expect good capital growth in inner city suburbs such as Balmain," Mr Montano said.

The highly professional and experienced team at Raine & Horne Balmain is ready to help you realise your goals in all areas of real estate, including residential and commercial sales and management.

For all your property needs contact Raine & Horne Balmain (02) 9818 7192.

For more media information contact Vincent Montano, Raine & Horne Balmain, on 0411 192 501, or Alana Drivas, Raine & Horne Marketing Communications Coordinator, on (02) 9258 5448.