Good times tipped for real estate investment

Jan 2020Karen Millers

Record low interest rates look set to underpin a positive year ahead for real estate buyers,owners and investors.

While thousands of first home buyers will benefit from a new government deposit scheme, Australia’s 2.2 million real estate investors are enjoying the cheapest money in memory to help build their wealth.

The Reserve Bank of Australia is tipped to cut its official interest rate at least once more, and economists expect rates to stay low for a long time.

Five of the nation’s capital cities experienced house price growth in 2019 – Sydney, Melbourne, Brisbane, Hobart and Canberra – and forecasters expect an improved 2020.

Investors had record-low participation in the housing market last year, according to research group CoreLogic.

However, Prime Property Strategies director Sasha Holland expects investors to bounce back amid higher prices, declining housing supply and booming population growth of about 400,000 people.

“The ability for investors to access mortgage rates that are lower than the yield they receive from their investment property means that we are seeing the best investment conditions in over 10 years,” she said.

Ms Holland said smaller cities such as Brisbane, Adelaide and Canberra were likely to do better because of their improved affordability and buyer worries about sharp swings in Sydney and Melbourne in recent years.

Many investors will look further afield, with research from Property Investment Professionals of Australia (PIPA) finding that 45 per cent intend to buy interstate this year.

PIPA chairman Peter Koulizos said investing beyond state borders had blossomed in recent years.

“More and more investors are recognising that there are myriad investment opportunities around the country, rather than being blindsided by what’s happening in their own backyards,” he said.

CoreLogic International CEO Lisa Claes said Australia’s property market was “full steam ahead towards recovery” but affordability was a big issue for many, with the group’s research finding an average person needs to save for more than eight years for a 20 per cent deposit.

“Despite these barriers, property ownership remains the Great Australian Dream, with 86 per cent of Millennials surveyed stating it’s important to be on the property ladder,” Ms Claes said.

The Federal Government’s First Home Loan Deposit scheme opened on January 1 and will allow 10,000 buyers to save on fees and secure a mortgage with just a 5 per cent deposit, with the government guaranteeing the remaining 15 per cent deposit.

Turner Real Estate general manager Emma Slape said both landlords and tenants shouldn’t switch off at this time of year, which was one of the “busiest times for rentals as people move interstate, change jobs or  study, or decide that the next year will be a new beginning”.

Prospective tenants should submit applications quickly and in detail to show they were ready to rent, she said.

Anthony Keane, Herald Sun, Melbourne, Page 31, 6 January 2020
Adelaide Advertiser, Adelaide, Page 33, 6 January 2020
Courier Mail, Brisbane, Page 31, 6 January 2020
Daily Mercury, Mackay, Page 18, 6 January 2020
Toowoomba Chronicle, Toowoomba, Page 8, 6 January 2020
Northern Star, Lismore, Page 15, 6 January 2020
Daily Examiner, Grafton, Page 14, 6 January 2020
Queensland Times, Ipswich, Page 14,6 January 2020
Gladstone Observer, Gladstone, Page 13, 6 January 2020
Morning Bulletin, Rockhampton, Page 18, 6 January 2020
Cairns Post, Cairns, Page 28, 6 January 2020
Gold Coast Bulletin, Gold Coast, Page 18, 6 January 2020
Hobart Mercury, Hobart, Page 17, 6 January 2020
Northern Territory News, Darwin, Page 21, 6 January 2020
News Mail, Bundaberg, Page 14, 6 January 2020
Sunshine Coast Daily, Maroochydore, Page 16, 6 January 2020
Daily News, Warwick, Page 12, 7 January 2020
Gympie Times, Gympie, Page 16, 7 January 2020
Western Star, Roma, Page 12, 7 January 2020
South Burnett Times, Kingaroy, Page 31, 7 January 2020

Anthony Keane, Daily Telegraph Australia, 6 January 2020
https://www.dailytelegraph.com.au/moneysaverhq/good-times-tipped-for-real-estate-investors-amid-lowrate-nirvana/news-story/430cbba7c3e4fb22f99be307427a6830?btr=7e99f8ba7fad47bc55831f531f4acba4

Anthony Keane, Adelaide Now, 6 January 2020
Anthony Keane, The Mercury, 6 January 2020
Anthony Keane, Gold Coast Bulletin, 6 January 2020
Anthony Keane, Western Australian, 6 January 2020
Anthony Keane, The Courier Mail, 6 January 2020
Anthony Keane, Cairns Post, 6 January 2020
Anthony Keane, Northern Territory News, 6 January 2020
Anthony Keane, Herald Sun, 6 January 2020
Anthony Keane, Geelong Advertiser, 6 January 2020
Anthony Keane, Townsville Bulletin, 6 January 2020
Anthony Keane, Central and North Burnett Times, Kingaroy, Page 28, 9 January 2020

Are you watching the clock

Apr 24

Is now the right time?” It’s a commonly asked question by both buyers and sellers in the property game, and while real estate experts often caution against trying to time the market, there are several factors that can help you decide if the market is ripe for buying or selling.

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