Investors must be wary of buying at top of market

While buying in Sydney is strong at the moment, one property-specialist accountant has expressed fears that this could lead to property investors buying at the height of the cycle.

Principal of Keshab Chartered Accountants, Munzurul Khan, told Property Observer that it appears the market is very strong at the moment and a lot of people are purchasing but that this may not be the best sign for prospective buyers looking to get in.

"This is where one needs to be careful so that we do not purchase on the top of the market," Khan said.

"I suppose the question is how do we know that we are at the top of the market. I have seen the cycle before couple of times and I do fear that, perhaps, we are not very far in NSW."

He also pointed to interest rates as a concern.  

"One also has to consider that the interest rates will sooner or later increase and the repayment calculations must be done with a bit of higher interest rates, than the current rates," he said.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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