Australian property market trends are surprising and somewhat hard to keep up with at the best of times! However, if you’re looking to buy or sell in the new financial year it’s definitely something you should to consider.
To assist navigate the mind field of information out there we have researched some hot real estate tips and the latest stats to shed some light, particular the hot spots which could make you money!
Surroundings and Location
No surprises here. There’s a reason the saying is ‘location, location, location’…
Buyers can buy with their heart sometimes, but a serious property investor will always buy with their head.
Property listings that have local amenities and nearby facilities such as schools, shopping centres, transport stations, universities & CBD’s will always rank highly in the buyers decision-making process. For people buying the next family home or even couples purchasing their first home, these characteristics add a level of convenience and value.
When an investor comes along, things like local transport and universities ultimately ensure there’ll be a continual demand for rental return. This is a big positive to maximise yield and can make a big difference in a buyer’s long-term investment strategy.
Property expert from Realestate.com.au Nerida Conisbee predicts that moving into 2020, capital cities Sydney and Melbourne will experience an increase in property prices with city-close suburbs like Allambie Heights (NSW), Middle Park (VIC) and Birchgrove (NSW) seeing a high demand for majority of 2019.
From looking at the top ‘in-demand’ suburbs from 2019 it’s clear that buyers are not afraid to splash some cash for their dream home. It’s also clear that moving into 2020 Sydney and Melbourne are still the buyer’s choice in terms of cities, however we’ve seen some significant growth in the Brisbane and Queensland regions. This could mean buyers are looking to escape the southern cities for warmer weather or perhaps simply wanting to get more for their money.
Check out realestate.com for more news and information.
Pricing – Are Houses Getting More Expensive or More Affordable?
The housing market has experienced some healthy growth over the last few months in Australia. Since June 2019, the Reserve Bank of Australia (RBA) has cut interest rates three times, with the official interest rate plateauing at a record low 0.75% in November.
As a result of these interest cuts both Melbourne and Sydney have continued to grow in market value significantly. With interest rates at record lows buyers are now saturating the market. Talks of another interest rate cut early next year and easier access to finance is enticing investors back into the market – meaning timing couldn’t be more perfect for sellers..
Some property commentators are even forecasting double digit capital growth next year which is exciting, however its important to note our property markets are very fragmented and not all markets are performing the same.
Source: The Property Update (2019)
Auctions for Selling!
So far we’ve seen that auction clearance rates have increased whilst interest rates decreased during 2019 (especially in Sydney and Melbourne), so when selling a property in 2020 it appears the auction route may pay off.
Buyers look like they’re in the market to actually buy as confidence levels with financing options grow (thank you interest rate cuts) and more homeowners begin to list their properties as a result of this buying interest.
Melbourne finished 2019 with an auction clearance rate of 72% for it’s final weekend of the year which was almost double what is was for December 2018.
The Australian property market is a tricky one sometimes, with interest rates, finance and loan condition changing constantly, and demand increasing and decreasing month to month. There is also tax to consider when investment property is involved, particularly how to pay less of it!
So, if you’re looking to get your foot on the investment property ladder, grow your portfolio or perhaps reduce it, it’s always best to seek professional advice beforehand.
Moving into 2020, a new year and a new decade, take the step and call the team at ABA Tax on 1300 797 175 or email at email@example.com for any queries or questions you may have regarding the real estate market and investment strategies.