With 2018 well underway, it’s a great time to look into the fast-growing property market of the year. While there may have been a marginal softening of the market last year, the activity around Sydney remains strong.
My top three predictions for the property market in 2018 are:
The Reserve Bank of Australia (RBA) historically left the cash rate on a low setting of 1.5 per cent at the end of 2017. This was the 16th consecutive month the rates had been left on hold, meaning there were no changes to the cash rate throughout 2017.
With the RBA leaving it so low, it’s a good sign of showing support of the growth within the economy.
Off-Market Sales are increasing and are expected to rise as it becomes more popular and effective within some areas.
To make the most of this growing trend, it’s suggested to make yourself known to local real estates. This way you will be added to their database and remain informed about upcoming properties that meet your needs in the areas you desire.
Another simple tip would be to make regular contact by phone or email with the leading agent in the area that you wish to purchase in. This will keep you top of mind – once a month would be sufficient.
With banks making it harder for investors to receive loans, it is expected that first home buyers will make a come back into the market, taking advantage of government concessions.
Speaking to a financial advisor will provide investors with an opportunity to explore their options to expand their investment portfolio with the bank’s support. Be open to going with second or third tier banks, within reason of course.
With loans now harder to obtain, ensure that you have your pre-approvals in place as early as possible. You may or may not be aware banks keep a development register, which is a security register on their exposure rate.
For example, Westpac group rate is around 20 per cent in apartment buildings. So for those that have purchased off-the-plan and will require finance, then all of you will be applying for finance at the same time. For example, if the building consists of 50 apartments, Westpac group will only lend to 10 apartments in that building.