Making the decision to purchase an investment property is a significant step, particularly given the current uncertain market conditions. Nevertheless, for those in a favorable financial position, this may present a strategic opportunity worth considering.
Here are the reasons why.
Interest rates and market expectations
Interest rates play a pivotal role for investors to ponder. Although they are presently elevated, market commentators widely speculate that they may have reached their zenith, potentially paving the way for a decline in the latter half of 2024.
The projected decline in interest rates is anticipated to stimulate property price appreciation across the capital cities of Australia.
Supply and demand dynamics
Another factor bolstering the market’s resilience is the persistent imbalance between housing supply and demand. Despite a recent uptick in listing activity, the supply of homes for sale continues to be constrained.
For instance, although thepropertytribune indicates that January marked the busiest start of the new year for new listings in Sydney since 2011, the overall number of properties listed for sale remained approximately 10% below the decade’s average.
Despite low supply, demand remains exceedingly high, driven by rapid population growth. According to the Australian Bureau of Statistics, our country added over 600,000 people in the year leading up to June 2023.
With a majority of new arrivals opting to rent rather than purchase, the Australian rental market continues to tighten. According to Propertyupdate, the national vacancy rate plummeted to a record low of 0.7% in February.
Why this suits investors
Investing in property at this juncture may indeed prove to be a wise decision, but it’s crucial to carefully assess your own financial circumstances and conduct thorough research before taking the plunge. An expert mortgage broker, such as Speed Lending, can offer invaluable assistance in this regard.
Looking to purchase an investment property? Speed Lending is here to assist you every step of the way. To explore your options, please contact us at 02 9758 2182, email us at info@speedlending.com.au, or fill out our online form.
