It's Time to Invest
You may have seen in the news that it’s a great time to sell or even buy a home. But if you’re settled, love where you live and have no plans for a personal change, then you’ve likely tuned out all this noise. However, did you know that there is still a way that you can make the most of the favourable market conditions? Investing – and there are a few reasons why it’s an exceptional time to invest in property.
Property Prices are Rising
You’ve probably heard that house prices have been rising across Australia, with Brisbane seeing an annual growth rate of 5%. This is after the 1.5% February price rise became the steepest rise since November 2007! But this is only set to rise further with Westpac recently forecasting that Brisbane prices are likely to surge 20% between 2022 and 2023. That means Brisbane is tipped to be one of the best performers in the Australian real estate market over the next few years. For investors, this means phenomenal capital gains are in store and that now is probably the best time to enter the market before prices soar.
Interest Rates are Really Low
It’s all over the news: the Reserve Bank’s official cash rate is the lowest it’s ever been at 0.1%. This has led to many major banks lowering their interest rates to an average of 2.8%, making it more affordable than ever to take out a home loan. For homeowners looking to invest, this is amazing news given that they can take advantage of their home’s equity and take out a low interest loan. Plus, with the RBA saying that they are unlikely to increase the rate until 2024, it really means it’s a great time for new investors to enter the market.
Rental Stock is Low
Rental stocks across Australia are low, with Greater Brisbane’s average vacancy rate sitting at 1.4% in September 2020, presenting renters with the tightest rental market in 10 years. Our agency’s vacancy rate is even lower at 0.4%! This has led to many prospective tenants offering above asking price just to secure a home and many rental properties being snapped up quickly. Such tight conditions have meant investors are reaping the rewards and finding it easier to rent their homes to quality tenants. For new investors, this means it’s the perfect time to enter the market. As a bonus, you’ll also be easing the burden on prospective tenants that are finding it difficult to find a home.
There is no right time to sell a property - it really comes down to your own circumstances. However, when you know the facts about the value of your most important asset you can make smarter decisions that more positively affect your current and future financial wellbeing.
A property appraisal is an easy, informal and essential process if you’re thinking about selling, or just curious about the value of your most important asset. Who knows, the appraisal results may even surprise you.
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