EOFY Tax Time - Market Update
With another financial year behind us, we look at the coming FY 2019 and what lies ahead for Australian Real Estate market and interest rates.
The 2018 FY year has seen interest rates hold steady with no official change to the cash rate and home loan interest rates remaining at unprecedented record low levels.
Towards the end of 2017, we anticipated property prices would stabilise and first home buyers venture back into the market place which is exactly what has happened. We’ve seen a large number of first home buyers secure property during the first six months of 2018 and predict this will continue to early 2019 when we expect investor-led purchase activity to start ramping up again.
There has been plenty of media scrutiny around median property values and pricing during the first half of 2018 - our opinion is much has been biased reporting depicting a softening market, rather than the actual case of the market being in a period of less high-end properties up for sale and more lower-priced, affordable properties selling and in demand. The heightened buyer activity at this end of the market naturally lowers the overall median value - it does not mean home prices are tumbling or coming down across the board!
2019 and beyond:
There are still plenty of suburbs throughout metropolitan Melbourne and Sydney where it is still affordable to enter the property market. Sure, many of these properties are not close to the CBD, but they still offer good value for money with fair to good long-term growth prospects for those wishing to invest in real estate. There is also the option of many regional cities with easy access to transport into major cities - these represent great value with decent long-term prospects. As we mentioned in our last newsletter, to maximise return, real estate is generally best approached as a medium to long term investing strategy, rather than short-term, so don’t think about how your portfolio will look in 2020, but rather look towards 2025/2030 as it is not that far away (7-12 short years)!
Please feel free to call me on 0438 041 111 to organise a time for a confidential discussion on your own situation and how we may be able to help secure your property purchase.
As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’
Peter Vinci - 0438 041 111