Property Market Overview
The housing market in Australia is undergoing a correction. After 5 years of sustained growth we have reached the point in the cycle where capital growth may slow or even decline. This is not all bad news. With interest rates still as low as ever and no prospect of an increase on the horizon, first home buyers are entering the market and it’s a good time to look for opportunities.
While the global economy ebbs and flows, there are always people who can afford to educate their children overseas. Australia has a reputation as a preferred destination for many international students because of our close proximity to Asia and our high standard of education.
For students studying long term in Australia, many wealthy parents purchase property for their children to live in while studying and a home base for when family visits.
There is also a strong demand from overseas investors looking to buy holiday homes to use for family holidays and rent out when not in use or as a second residence.
For the domestic market, buying property in rural coastal areas is forecast to remain popular especially when the Australian dollar exchange rate makes travelling overseas expensive. This opens up opportunity for investors looking at short stay accommodation and holiday homes.
Property speculators are always on the look-out for good investment. Recently, older established homes on large blocks have created interest for those who want to demolish and develop or build a high quality luxury home for themselves.
It’s unfortunate, but global uncertainty creates panic for sellers who may want to take their profits and run. Having a fire sale is not the way to maximise your investment as it puts all the bargaining power in the hands of the buyer.
The current economic landscape and downturn in the mining economy has resulted in some consolidation and a lot of second homes and investment properties are available on the market. Property owners have experienced over 5 years of significant capital growth, so even in a slowing market, most sellers are still receiving a reasonable return on their initial investment.
As times change, so do your circumstances. It’s important to remember that if you’re considering moving home you will be buying and selling in the same market. Quality is always in style, so if you’re putting your house on the market make sure it’s presented well and stands out from the crowd. Whether you’re upgrading or downsizing, there are high quality luxury homes on the market that are more affordable than ever.
Prior to selling and/or purchasing an existing property however, it is a good idea to have a professional Designer/Builder take a look with you to advise on the potential of the site, and save you difficulties at a later stage, which is an area of expertise that we at Artique Homes Specialise in, and have done so for over 28 Years – contact Artique Today on 08 9240 1142