MARKET UPDATE: 5 reasons why now is the time to buy
New statistics from urban.com.au reveal 48%[1] of off-the-plan buyers feel more confident purchasing property following the Liberal Government’s recent election win. Since the election result announcement, the property industry has been forecasting the future of new development sales in Australia, with many forming the opinion that the market is likely to surge.[2]
With the Reserve Bank cutting the official interest rates, the First Home Loan Deposit Scheme becoming available to first home owners in the coming months and a surplus of high quality stock currently available, we are very much in a buyer’s market. The challenge for purchasers is ensuring they purchase through a developer committed to quality and functionality in order to ensure their investment is secure. Good design, durability, materials and finishes are essential within any off-the-plan development, and with 25-years of property development and investment at hand, purchasers can be assured any Bensons project will deliver beyond the expected.
5 REASONS WHY NOW IS THE TIME TO BUY
1. INTEREST RATES HAVE DROPPED
The Reserve Bank of Australia has cut official interest rates to a record low of 1.25%. Rates are also predicted to drop even further as Shane Wright notes, “The RBA’s move was widely tipped by the market, with 96 per cent of economists surveyed by Bloomberg predicting a rate cut and more than 80 per cent pencilling in another by August or September.”
2. THINGS ARE ON THE UP
Buyer’s agent Cate Bakos says, “There has been a double-dose of positive sentiment. Negative gearing is here to stay and APRA is discussing easing serviceability. The feeling is the worst is behind us. Easing loan serviceability is a game changer.”
3. FIRST HOME BUYERS ARE TAKING ADVANTAGE OF AFFORDABLE PROPERTY
Price falls over the last 12 months, paired with lower interest rates to come, mean that first home buyers are getting more involved in the market. Duncan Hughes writes, “According to finder.com.au, which monitors fees and prices, there has been a 40 per cent increase in traffic to its web pages targeted at first-time buyers since the federal government announced a first home loan deposit scheme.”
4. SIGNS OF THE MARKET FINALLY FINDING THE FLOOR
Noel Towell writes, “The Victorian Government says the worst of Melbourne’s property crash may be over, with the downturn showing signs of ‘bottoming out’.” Recent news from David Martine, Secretary of the Department of Treasury and Finance, says some of the latest data is cause for optimism with more home loans being written, more houses selling at auction and decelerating price declines.
5. GETTING ON WITH BUSINESS
“There was a bit of uncertainty leading into the Royal Commission process, which may have led to a bit of a risk aversion on behalf of some of the lenders, but now the royal commission is over, and now the election is over — and there was obviously uncertainty over the Labour Party’s high tax agenda on the economy — we can get on with business,” Treasurer Mr Frydenberg said.
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[1] urban.com.au
[2] AFR, news.com.au, Smart Property Invetsment