Well Happy New Year and welcome 2012.

I have a feeling this year is shaping up to be one of the most interesting years on record for property investors.

2011 was a reasonably flat year for property with prices not moving much and falling in some sectors. High profile properties and properties on the expensive end of the spectrum also suffered ensuring we all heard about the “doom and gloom” in the media.

Global economic concerns will continue to dominate headlines and undoubtedly our thoughts throughout 2012.

But what about property investment?

In this market, as in most, property investment is a long term investment decision.

Property prices will be interesting in 2012. Property experts agree that in 2012 we are likely to see modest growth in property prices of around 3-5% . However, with any market uncertainty there are great property deals to be had. The astute investor will find well priced property offering good cash flow returns and long term capital growth.

Interest rates are will either remain unchanged or trend lower as the retail sector continues to struggle. This will make a property purchase yield good rental returns in the short term whilst the market recovers and prices trend upwards in the long term, as they have always historically done.

Mining will continue to drive a lot of the good property investment opportunities. As you will see in our feature article mining regions will continue to offer good property investment opportunities.

Already we are seeing buyers returning to the market with property experts tipping a larger influx of buyers from March onwards.

Our feature article on the Hunter Valley - showcases one of the more unique regions in Australia that is growing through a mining boom that is also underpinned by an already large economic base close to Sydney. A number of factors is driving the Hunter Valley’s growth and I encourage you to read the article on investment opportunities in the region and how Portfolios can help.

Welcome back for another year – we trust you had a great holiday break and enjoy a prosperous 2012.

If you want to talk about your plans this year – or find out about some great property opportunities we have at Portfolios give us a call or send us an email.

Source: Domain – www.domain.com.au

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