…With so many daily changes affecting Australia’s economy, where is the housing market headed?
…What will houses cost in 2022?
…Is now a good time to buy, or will prices be better at the end of the year?
If you’ve been trying to get a handle on Australia’s real estate market, we’re here to unpack the latest industry insights!
Due to the pandemic lockdowns, Australians have reevaluated their living situations.
With many employers maintaining work-from-home policies, a lot of people are moving to new areas, causing big shifts in the housing market. Plus, due to the inability to travel, people have saved money; thus, enabling many to stash away a sizable downpayment for new accommodations.
As the media keeps reminding us, we are in a property boom! So, what can we expect in a post-pandemic property market?
Low-Interest Rates
We can expect the banks to give low-interest rates to those requesting loans. Here’s the truth: banks are ready to loan money! What does this mean for you? Interest rates on home loans are lower than they have been in years, but nobody can say for sure how long these great interest rates are going to be available.
Increase In First-time Buyers
We can expect an increase in first-time buyers, although there’s good and bad news for them as they enter the market. The good news is that the banks are offering extra incentives and low-interest rates for first-time buyers. The bad news is that because the interest rates are so low, investors are purchasing more properties with the expectation that property values will dramatically increase in the coming years. So, first-time buyers may find they have a lot of competition in purchasing their first home.
Location, Location, Location
We can expect property location to be a big driving force of purchase. In a post-pandemic world, location has become increasingly important. People want to be able to walk, bike, or drive to everything within 20 minutes. Everyone is looking for a “good neighbourhood,” although everyone’s definition of that is different. Unsure of what makes a property location a good investment? Let our team of property experts find the best property for you, absolutely free of charge!Property Prices Will Rise
New industry data suggests property prices are about to rise. There are, of course, many factors that affect property values. Nevertheless, prices are often driven by consumer confidence, low interest rates, economic growth, and the supply and demand ratio. ANZ Bank predicted in a recent report that house prices will increase by 17% through the end of the year, and another 6% in 2022. More specifically, they called out a few locations by name. They predicted that:- Sydney house prices will increase by up to 19% by the end of the year
- Melbourne house prices will increase by over 16% over the year
- Brisbane house prices will rise by 16% this year
- Adelaide house prices will increase by over 13% over the year
- Perth house prices will increase a whopping 19% in 2021
- Canberra house prices will rise by over 16% in 2021, and
- Darwin house prices will increase by over 16% this year.
So, What About Affordability?
With the onset of increased property values, will housing be affordable? Believe it or not, yes! Housing may even be more affordable than ever due to the extremely low interest rates. The good news is that the RBA has stated they plan to keep interest rates at the record low of 0.1% until at least 2024. Though, if the economy bounces back even faster than analysts predict, meaning Australia’s unemployment rate is below 4.5%, then the interest rate would be subject to increase.What Does This Mean For You?
If you’re ready to get started on your investment property journey, now is the perfect time. With interest rates at record lows, and the market predicted to rise over the next year, that makes it the ideal time to jump in before prices inflate. Ready to create a property investment strategy that’s perfect for your goals? We can help! At OneCorp, we combine your vision with our knowledge. We’ll help you find your dream property while holding your hand through the whole process! Getting started on your investment property journey has never been easier:- We start by helping you set clear goals and objectives as to what you want to achieve through property investment.
- From there, we run the numbers through proprietary software to accurately assess exactly what you need out of a property portfolio to achieve those goals.
- Lastly, we find the perfect property to make those objectives a reality!
