Those looking to get a foot on the property ladder may soon lose their opportunity if they don’t act fast, according to a national accounting and wealth advisory group.
Property availability is beginning to dwindle with demand growing steadily, according to Chan & Naylor, potentially signaling an upturn in the market that may leave some priced out.
Investors waiting for the ‘bubble to pop’ could be waiting a long time, according to director Ken Raiss.
“Property values have remained on an upward trend with modest corrections within a cyclical”, said Mr Raiss.
“High living standards, low and controlled interest rates, relatively high population growth, undersupply and a healthy banking system are only a few reasons why buying property in Australia is an attractive option for personal occupancy or investment.
“In fact, demand is undeniably set to grow,” he said.
This demand will be on the back of the retirement of the baby boomer generation requiring overseas immigration to fill the widening skills gap, the five million Gen-Ys entering the market, diminishing available land and a lack of government initiatives to assist supply.
“Property acquisition should be treated as a business process as opposed to an act of the heart and realise that it can be a stepping-stone towards acquiring the perfect home later in life.
“Property is the biggest asset most people will own, and so they need to surround themselves with professionals who can offer advice in making considered and informed decisions, such as buying in the right market and property cycle or choosing a property with the opportunity to create equity through renovation or improvement, boosting both capital value as well as rental yield,” Mr Raiss said.
He advised that those looking at the market currently need to ditch complacency and improve their financial literacy.
Parental assistance may be another option to consider.
“While for the likes of the UK, the rise of the ‘boomerang generation’ is driven predominantly by high levels of unemployment and a poor economy, Australia could find itself experiencing a similar effect, not because our economy is weak, but because not enough is being done by the government to prevent a housing shortage,” he said.