The housing market in Victoria has experienced some price reductions in the last 12-18 months, but here are several good reasons why it is about to turn around and why now might be the best time to buy property.
Reasons why it’s time to buy property:
- Reserve Bank of Australia announced a 0.25 per cent rate cut in June 2019. With a further hint of seeing another rate cut as early as next month. This will also influence an additional increase in borrowing capacity.
- Australian Prudential Regulation Authority (APRA) announced changes to the loan serviceability assessments conducted by the banks. Taking it down from the approx. 7.25 per cent interest rate to the 6.5% mark. This will improve buyer’s borrowing capacity and provide more buyers in the market.
- With the federal election done and dusted, the Coalition government winning the election is a win for investors. With the Labour government announcing changes and removal of negative gearing these proposals have been canned.
- First home buyers can celebrate. From January 2020, the government will help first home buyers with only a 5% deposit. At this stage they have needed a 20% to secure a mortgage.
- Builder competition is high. Many builders are offering incentives to attract new buyers. Taking advantage of their current appetite is worth a serious consideration.
- Land developers are offering huge incentives. These incentives will not be around for too long, but at the moment there are opportunities were the land developer will pay a 5% deposit to the builder. This can save you up to $25,000 on the house.
- Auction clearance rates. Auction clearance rates are showing upward trends nationally. Pleasingly Melbourne’s clearance rates in the first week of June 2019 reached approximately 65%. This is up on recent months. This data is another good indicator that the property mark is on the way up.
If you would like to talk to us about searching for your first or next property, perhaps it’s your best time to buy property. Please don’t hesitate to contact us.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Jun 2019
