13 March 2019
Think the time is right to buy a house?
There’s no shortage of news about the downturn in the
national property market. Since October 2017 we’ve been witnessing a steady
decline in property values, and while experts continue to speculate that the
end is in sight, the situation remains that property prices are the lowest
they’ve been in almost 18 months.
So while it may not be a blue sky environment for property
owners who need to sell, the other side of the coin is much shinier for those
in the market to buy. Even more so if you’re setting your sights on a property
in the sub $500k category.
Sales are up in the lower end of the market, with REIWA reporting 49% of sales in February had a sale price below $500,000.
With the trend now in its third consecutive month, REIWA President Damian Collins said traditionally, a greater proportion of activity occurring below $500,000 indicated first home buyers were on the move.
Corelogic’s latest report observes that the number of properties for sale has been ‘consistently rising due to fewer buyers and longer selling times’, and while vendor confidence may be low, ‘buyers are firmly in the driver’s seat’ when it comes to bargaining power.
Let’s not forget that official interest rates
remain at a historic low. Currently sitting at 1.5% with no change since August
2016, although most lenders hover between 3.5%- 5.5%, the stability in rates is
another draw card for home buyers.
It all adds up to a buyer’s market and if you’ve been savvy enough to save a decent deposit, you’ve got a great chance of snapping up a bargain.
Don’t despair if you need a little more in the kitty before you take the plunge, REIWA’s got some great tips to help kick your savings along if you’re trying to reach a deposit goal.
When you’re ready to navigate the world of home loans, the team at Shakespeare Leasing & Mortgage Solutions can help find the perfect fit for your needs.
Contact them on 9321 2111 to see how they can help – just like Conor and Emily did!
General disclaimer: Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles on this website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
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