There is never a dull moment in the Australian property market. Whether you’re looking to sell your family home, are seeking a suitable investment vehicle or enjoy buying and flipping fixer-uppers. You need to have your finger on the pulse of what’s happening so you can make the best decision to satisfy your needs as well as meet your financial goals. Whether you’re a seasoned professional or just dipping your toes in the property market, here’s what you can expect in 2020.
Next Year’s Market
If you’ve been riding out the slump in demand that’s taken place over the past few months, you’ll be happy to know that property prices will stabilise and possibly rise next year after months of falling. Last month, the RBA took a 0.25-point rate cut which in turn, encouraged some banks to cut their rates by half and in some cases a bit more points than RBA’s suggestion. The rate cut transferred into creating favourable conditions for buyers as they head into the new year. Brisbane is predicted to experience the best increases, with Sydney and Melbourne following at a more modest pace. While all growth is good growth, it’s unlikely that prices will skyrocket to previous heights, as tighter lending restrictions will keep spending from going wild.
While wage growth is still stagnant and the unemployment rate unlikely to significantly drop anytime soon, it’s a good time to invest in property, if you have the means. The Reserve Bank of Australia’s slashing of the cash rate (mentioned above) means it’s has reached below one percent. This makes applying for a loan more affordable and means that existing loan holders will likely benefit from lower repayments. However, if you can afford to keep up with your current repayments you could easily slice years, if not, thousands of dollars off of what you owe the bank, so think wisely about what you’d rather have.
If you’re currently looking to apply for a home loan, you’ll be pleased to know that the APRA has lifted the cap off of interest-only mortgages (a limit that has been in place since the beginning of the year). This will benefit you if you’re looking to get into property investment at a lower cost, while maximising your tax benefits. However, if you’re currently locked into a home loan, now would be the best time to get on the phone and start looking for a better deal, as you’ll likely be faced with several offers.
Property investment can get complicated, but if you have the right team on your side, it is a lot easier. For advice on the best home loan or any other property-related query call Blackbox Finance today on 1300 70 12 17, submit your enquiry in the contact us section below or email us at firstname.lastname@example.org. Your trusted mortgage broker for Burleigh, Palm Beach, Currumbin and the beautiful surrounding areas.