If The Economy's Like A Box Of Chocolates, Go For The Rich Bits

Newcastle Herald

Saturday September 13, 2008

By MELISSA LYONS

IT was Tom Hanks's famous line from film Forrest Gump that ComSec Advisory chief economist Craig James used to describe Australia's uncertain economic climate during The Herald business breakfast at Cooks Hill Life Saving Club yesterday.

"Life is like a box of chocolates, you never know what you're going to get," Mr James said.

However, despite an unstable sharemarket and a falling Australian dollar, there was one thing Mr James was certain about if you are looking to buy a home, now is the time.

"Interest rates have peaked. We have already had one interest rate cut and the next one is forecast for November. They won't drop rapidly but they will be cut gradually," he said.

"Already some of our lenders have reported contracts of sales are coming through."

At the head of the "spring selling season", Mr James said vendors would put more properties on the market and buyers should cash in on stable prices.

"If they hold off too long they'll see more competition, and that has the potential to push up prices," he said.

It was also tipped to be a ripe time for investors who were warned to move early before house prices increased.

© 2008 Newcastle Herald

Back to News Index | Back to Home