A common question we are asked is ” What’s happening in the property market”? We just returned from the Property Buyer Expo and we want to share some important information, so if you looking to buy, sell or hold real estate in Sydney then read on…
9 tips for you from the Property Buyer Expo!
1. APRA & the Royal Commission’s intervention was essential due to some alarming statistics. Like for the first time ever investor loans had overtaken owner occupier loans & approvals for apartments were at a record high.
2. Don’t listen to the media. The Australian property market never sees the whole market move in unison. Local economic events determine performance.
3. Past performance will not determine future performance. Infrastructure and population growth are important keys to determining performance of an area.
4. The SYDNEY property market is unlikely to grow, expect it to be flat for a while. Prices could come back further.
5. RBA is unlikely to raise interest rates due to GDP showing income is not rising and we are spending our savings. If banks continue to raise rates out of cycle then it’s likely the RBA will cut rates.
6. Banks are generally lending at 4 times your income, currently SYDNEY is showing borrowings at 14 TIMES your income. So essentially the buyer pool will become smaller, as the banks will lend less money to less people.
7. A change in the government is likely to have negative short term impact on the property market.
8.Realestate.com data shows buyer searching activity in NSW is down 22.5% and Tasmania is up 38.6%.
9. It’s not all bad news, there will be lots of opportunity for good capital growth within Australia. You must be open to buying/investing in other states of Australia.