The seasonal slowdown is already over: Auctions are back for 2022
The property market has had an earlier than usual jumpstart in January 2022. ...
With so much talk about the state of the property market at the moment some investors are inclined to wait and see, but waiting doesn’t bring cheaper prices.
Blogger: Philippe Brach, CEO, Multifocus Properties and Finance
I don’t ever remember the property market being in the news as much as it has been in recent weeks, and there are several different voices in the crowd:
It’s little wonder, then, that despite the cost of borrowing being the cheapest it has been in decades, and the ‘bubble’ really being confined to a couple of capital cities, many investors are a little nervous and wonder if they should wait and see.
As I tell many of our clients, property was cheap yesterday…. Usually waiting does not bring cheaper prices. In good locations, at worst, prices will plateau or will mildly correct, but not enough to warrant inaction.
Have confidence in your research
As noted, it is mainly in parts of Sydney and to a lesser extent Melbourne, where house prices have rocketed due to unprecedented demand and fears of missing out on ever buying a property! There are other areas that are delivering solid growth without the hype (think Newcastle, Wollongong and parts of greater Brisbane). Have confidence that good research will continue to uncover sound investment opportunities. The Australian property market comprises hundreds of towns and suburbs and it is false to claim that the housing market is in a bubble, it’s just a matter of isolating where the bubble is and looking elsewhere.
Keep calm and don’t get caught up in the hype
To avoid the hype, consider areas where private sale is the preferred method of sale so you don’t face the pressure of bidding at auction. Look at areas where the percentage of buyers far exceeds the number of properties on the market and research proactive councils intent on improving the infrastructure and lifestyle in their municipalities. It is these areas that could be poised for capital growth when the frenzy in other areas is dying down.
Don’t forget the interest rates
Finally, to beat those winter blues, just keep reminding yourself of the all-time low interest rates. It’s a great time to add money you are saving on interest to your offset account on your home loan or to pay down non tax-deductible debt. This will give you more equity to deposit on your next investment property.