Why do people buy houses and flats? Reason one: To live in them. Reason two: To benefit from a favourable tax regime if they are buying houses with borrowed money. And reason three: The possibility of value appreciation.
Ever since the early 1990s property boom collapsed, the last reason has almost ceased to exist. In most cities and suburbs, property prices have been stagnant or weak.
However, there is no reason to stop looking for good opportunities. Because, even in a dull property market, there are bright spots - just as there are shares the appreciate in a bear market.
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The tricky part is to find out where these pockets are located. Your neighbourhood broker may not be the right person to begin asking questions in this area because his interest lies in selling you the property which gives him the maximum brokerage.
And pricey property may not necessarily be the one that will appreciate the most. Housing loan companies, real estate consultants and property websites may be the right places to ask.
What you need to find out first is area-wise price trends - over the last one year, two years and 10 years. This will give you a fair idea about which areas are gaining favour with property buyers and which aren