Have you been putting off investing in a new property? Maybe the predictions of the global recession have scared you off. Even the Australian market predictions that have been going around hasn’t been that pleasing.
Buying a property is a very serious decision to make. However prepared you are, there are always chances of the market surprising you, but it is still vital to know about what is going on and to see what factors could influence the prices.
In spite of what the media tells you about the market, there is still good news for those who have been waiting to buy a new house or a property. Choose the right Brisbane builder for your home.
If you consider the latest news, most of what you hear about the doom in market values for properties revolves around mainly Sydney and Melbourne. However, the highest decline rate has been found in the elite part of Melbourne’s inner eastern suburbs for modern house designs. The prices here have skyrocketed as high as 144 per cent over the last six years from 2012 to 2017. The same criteria is seen in Sydney as well.
But to find the right place to invest, you need to look beyond the headlines. The main reason for the widespread market decline owes to the record population growth in the city. Especially Melbourne, with its plentiful job opportunities and standard of living, has been attracting many.
Factor in the ongoing high overseas immigration and there has never been more demand for housing. This will absorb any new developments in the construction field quickly. This is primarily why the markets in Sydney and Melbourne have gone backwards, whereas cities like Queensland and Brisbane has been witness to more steady growth.
While it is true that the value of median homes peaked last year, it is still possible to invest in a home for under $400,000 in many suburban areas and well under that in regions away from the capital city.
So the question is not whether 2019 is a good time to buy, but rather on where you can buy in 2019.
Where to Invest?
For that, it is essential to understand that Australia has more than one market when it comes to properties. That is also the essence of being successful in property investment. The objective is to avoid the markets that are declining and invest in those that are predicted to rise or already on the way to it.
Fortunately, plenty of authentic information on that front is available on newspapers.
However, if you are listening to only the mainstream media as your main source, then what you are likely to see are the massive rates, where they consider everything to be one single market. This would show widespread and significant price decline. Choosing the right building designer is important as it can make or break your project.
Nevertheless, if you take a look at the forecasters like BIS, SQM Research, Domain, Propertyology etc., you will notice that the predictions are relatively favourable for 2019 and 2020.
Again, taking the major cities like Sydney and Melbourne into the point, the forecast says that they will have slow-moderate growth from the middle of 2019 while the smaller cities have the potential to have a moderate to strong shift in the market.
Though there is less demand for such regions, they were the most promising in 2018 and will continue to do so in 2019. Custom Home Builders Brisbane gets you 3 competitive quotes from the most trusted builders.
According to Louis Christopher of SQM Research, Perth will make a solid recovery with house prices going up between 4 % to 7 %.CIties like Brisbane, Adelaide and Canberra, will also have similar growth. Sydney and Melbourne, on the other hand, will witness a fall between 3 to 6%.
When Sydney and Melbourne hit it off with the prices in the last few years, almost creating a bubble, Property valuation Brisbane has witnessed a very steady growth in 2018. There was no dramatic double-digit growth according to Brisbane builders. But if you are looking for long term investments, even a flat growth could turn out to beneficial.
So while thinking about buying a property, you need to think about how the market has been performing over the years. Not just how it has been working right now. If you buy a property in a city where the rate is currently low, but the growth has been zero, then it is not a smart move to make. Our house and land packages Brisbane got you covered from $50K renovations to $5M projects.
Consider Long Term Investments
Buying a house is always about investing for the long term, not just in life but also for the money value. Keeping aside the property market fluctuations, it is always a good time for renters to invest in buying their own property. Get in touch as one of our friendly team members will get back to you within 48 hours.
What renters are doing is supporting the landlords’ property investment. Instead, if they invest in their own property, they can find a new home that suits all their requirements and settle for the long term. The biggest perk is the low maintenance, and whatever you pay even for a mortgage is for your own home, which in most scenarios will be less than the monthly rent anyway.
There are new up and coming estate communities that offer house and land packages outside the cities. These often come with proximity to other infrastructures like schools and public spaces or would have its own developed alongside. Such properties are also looking up for 2019, with promising growth in the next decade. With a vetting standard that satisfies only the pickiest, Renovation Builder Brisbane ensure that your expectations will be met, if not exceeded.
The bottom line is, in 2019, if you are a short term investor, then the market could go in either way wherever you buy. But if you are looking for a long term commitment, without expecting anything in return for the first five years, then buying a property could be a meaningful decision now. Especially in the suburbs, You could add value to the property and over the years, even if the market is down by 5 % you still would be making a profit.
The key is to invest in the right area, after doing enough study about the market there. So take a good look at the different sources of information, educate yourself as much as possible and take advice from experts when necessary. Finding the right finance broker can literally save you tens of thousands.
The year is only starting, and right now is a great time to set your strategy. Find an experienced broker with TrustCo from the building brokers Brisbane who can give you an insight on this.