Being one step ahead of the swarm of property investors is the recipe for building above normal wealth. And as the seasons change, and our Plan Assist Property Team plan for another year, we are looking at ways to keep one step ahead while continually keeping an eye on the next set of waves building out the back.
Spring is nearly here. Once we hit September, there will be more properties to choose from because many sellers traditionally wait until Spring to put their property on the market. However, there are some things you may want to consider today, before investing in your next property, so you can secure the best deal possible.
Prices Are Forecast To Rise
The experts find it hard to predict the exact bottom of the Sydney market in terms of prices, however many experts are suggesting we may have already passed it with many suggesting prices are set to rise from spring.
Matthew Hassan, Westpac senior economist says, “The seasonal high for prices isn’t far away, in October and November each year”.
Shane Oliver, AMP Capital head of investment strategy and chief economist suggests, “If prices go up from here, that’s an argument to get in early”.
Trent Wiltshire, Domain economist is predicting a 2 per cent growth in prices for both houses and apartments from the end of June 2019 to December 2019.
“We’re not expecting a big rebound, but there will be modest price growth, and it’d be good to buy before that kicks in,” he says.
Record Low Interest Rates & The Ability To Borrow More
The two Reserve Bank rate cuts are pushing the market into record low interest rates. And now there is also a relaxing of borrowing serviceability rules from the Australian Prudential Regulation Authority where the banks will test customers’ ability to repay at 2.5 per cent above the current lending rate instead of the previous 7.5 per cent. What this means is that potential buyers will be able to borrow more which could have an effect on pushing prices higher.
Vendors Don’t Traditionally Sell In Winter Unless They Need To
We know that spring each year is considered the selling season with more property on the market and more buyers too, so with more buyers in spring this will also increase demand which has the potential to push prices higher.
Whereas right now in winter, there are less properties on the market and there are also less buyers right now, which also means less competition right now, so you are in a stronger position to negotiate a better price.
Liberal Election And More Market Certainty
The state and federal election property market uncertainty has gone now and the tax cuts are about to kick in across Australia, so at the very least, now is a great time to start doing your investment property research so you are well prepared to secure your next property investment deal.
And if you need help with any stage of securing your next property investment be sure to give the team at Plan Assist a call.