Should I buy an investment property now?

Yes or no there is no correct or incorrect answer. But I would hold there for a few more months. Personally, I think it is not a buyer’s market.

Let’s use Melbourne as an example. The overall auction clearance rate was 87 per cent, compared to 75 per cent this weekend last year and just 66 per cent this weekend in 2008. Meanwhile, the clearance rate for flats and apartments this weekend reached 93 per cent, with 71 out of 76 the properties sold. Let’s have a look at some auctions.

A unit at 2/28 Ulupna Road, Ormond had five bidders and sold for $560,000. Woodards agent Ruth Roberts said they sold the same unit in the same block three months ago for $505,000.

Janet Spencer, director of Buyer Solutions, said the auction of a three-bedroom property at 37 Elm Grove, St Kilda East also had good attendance. The house was quoted at between $750,000 and $820,000 but sold under the hammer for $990,000 after five to six bidders made over 40 bids.

Noel Jones group chairman Adrian Jones said one of the properties they auctioned at 8 Selwyn Street, Blackburn, was quoted at $500,000 to $550,000 and sold for $625,000.

”Buyers are out there regardless of long weekends, regardless of Easter and regardless of interest rate increases,” he said.

Do you want to be one of those buyers mentioned above? I don’t and that’s why I think you should hold there for a while.