According to this mortgage broker and property investor, the Australian property market could be in for a property boom following a recent boost in confidence.
The Australian property market should brace itself for a much-needed boom in the short term, according to mortgage broker and property investor Redom Syed, who announced his forecast on the Smart Property Investment Show.
“One word would be boom,” Mr Syed said.
“If I need to pick a word, confidence, boom... I would say, in the short term, yes.
“Rate cuts, this is what they do. Rate cuts drive people to buy property.”
According to Mr Syed, there will be more buyers on the hunt, meaning, in his own words, “prices go up, demand goes up, and supply takes time to react.”
“So using common sense there and using the economics of demand and supply, yeah, if I needed to pick a word, prices go up, so boom is probably a good way to say it,” he said.
When given the opportunity to explain what he meant by boom in more than one word, Mr Syed agreed that an “an explosion of interest”, as host Phil Tarrant suggested, might be a better way to explain the property forecast he had in mind.
“Yes, that’s probably a better way to explain it,” Mr Syed replied. “But… yes, confidence is back.”
Mr Syed added that he personally is at a point on his investment journey where he is deciding to pay down debt and, therefore, will not likely be one of those investors on the property prowl in the near future.
“I might adjust my strategy with all of this change happening, but I’m already exposed to it,” he said.
Mr Syed said that, hypothetically, if he had some cash to play with in the short run, he would be looking at Sydney properties in the $1.5-2.5 million price bracket in light of the upcoming boom he has predicted.
“That sounds like a lot of money when you think of it, [and] when people are going to hear this, they’ll think that,” he said.
“But in Sydney, that is a lot of suburbs, and I think those markets, and because of these changes and because of interest rate changes, it really targets them.”
“So the people who are buying in those markets are probably going to see an increase in demand [in] inner-ring Sydney.”
Mr Syed concluded by saying that Melbourne is also likely to see a demand increase as a result, due to urban areas in the capital city usually having supply constraints.