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The 3 reasons why confidence is back in the property market

1. Reserve Bank cuts rates with more likely to follow

  • The cash rate is now at an all time low of 1.25%
  • At least one more cut likely in the coming months which would take it down to just 1.00%

Benefit:

  • Low borrowing costs making it more affordable to own a property
  • Likely neutral or positive cash flow investment properties meaning the asset is putting cash into your pocket each week
  • Increased economic activity, infrastructure spending and jobs growth

2. APRA eases the lending restrictions on the Banks

  • The Australian Prudential Regulation Authority which regulates the banks has eased their lending guidelines
  • With interest rates at record lows the way the bank calculates your ability to service home loan repayments will ease

Benefit:

  • The changes give investors and home owners the ability to borrow more than previously available
  • Mortgage Brokers suggest that if you could borrow $500,000 before, you would likely be able to borrow at least $550,000 post the APRA changes

3. Market has seemingly bottomed

  • Auction clearance rates are steadily on the rise
  • Price reductions have slowed in recent months
  • Prices now at more realistic levels nationally

Benefit:

  • Buying at the bottom of the market means lower risk and higher chance for capital gain moving forward
  • Opportunity to buy before the market heats up again and developers remove the great incentives and offers available at the moment
  • Completed new property stock which still offers all negative gearing benefits are now available, in a rising or hot market these are normally all sold ‘off the plan’

How to take advantage of this market

  • There will still be some great developer deals and incentives on offer while the market rebounds and excess stock is sold. Find out which developers are close to settlement with unsold properties or need sales to complete their financing and you will find some great incentives.
  • Companies like Nyko will be looking to take advantage of the market, look for deals on offer not just from developers but also from the agents. At Nyko for example we currently have a $7,000 First Home Buyer Incentive on offer
  • Buy good quality property at the right price always. Incentives and discounts are great but only if the asset is quality to begin with.

To find out more email info@nykoproperty.com.au or call 1300 720 315

2019-06-24T14:14:25+11:00