A lot has taken place over these last few weeks - American banks falling over, stock market roller coaster rides all over the world and doom and gloom every time we open a newspaper or listen to the news. I think we need to put what is happening in the world economies into perspective. The Reserve Bank have met this month and decided to reduce interest rates by a full 1%.  Lenders will decide how much of this reduction they will pass on but competition is a great leveller between the lenders and even if they don't immediately pass all of it on, we will see some reduction and when things stabilize a little we could see more.

Housing prices in Perth have declined by 3.14 per cent in the June quarter and risen by just 2.9 per cent over the last financial year. Prices have declined following phenomenal growth which has seen Perth experience an average gain of 13.8 per cent over the last 10 years. However, the Western Australian economy continues to surge ahead and this should ensure that the housing market remains relatively stable. The rental demand for residential properties remains strong.

The market is poised to take off again on the back of cuts to interest rates and stamp duty. Now is an ideal time for investors to accumulate more properties in the market. Just remember, during panic is where wealth exchanges hands  and you can set yourself up to reap the rewards when the market takes off in the near future. I always position myself for success in the future so I buy property and hold on for the long term.