Many Australians believe that now is a good time to purchase a property. This is what a new research has found.
The study showed that more than half or 52 percent of Australians believe that property prices in their area will go up in the next 12 months and because of this, they think that the time is right to buy a property. Some 59 percent of homeowners are confident the market is in good standing now.
According to the study conducted by comparison site Finder, this is a sign that consumer attitudes towards property are improving. Bessie Hassan of Finder cited several factors such as the rate cuts, increased lending flexibility and continuation of negative gearing.
Some property experts think home values will continue to rise in the coming months. This is despite the falling prices in the first half of the year. House prices in Melbourne and Sydney had been increasing by up to more than four percent since June.
A senior lecturer at Curtin University’s School of Economics, Finance and Property, J-Han Ho pointed to certain factors that could lead to falling prices. These include rising unemployment, weak wages growth and an uncertain global economy. He believes that property buyers
should purchase based on their lifestyle and life choices for the long term. He added that purchasing a property at an older age is more beneficial because by then, you would know what you want in life and where you want to live.
J-Han Ho developed a model which cited that in Perth, for example, median house prices would need to increase by more than 2.6 percent yearly for the next 10 years in order for it to be considered a good investment than renting. Based on his model, those who are renting are in a better position to have money in their savings accounts with a low return while those investing in shares or superfunds need to wait for house prices to grow faster to match their investment. This means that when the median house price is higher, the prices would need to grow faster in order for the investment to be financially viable especially as interest repayments alone would be higher.
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By Wendy Chamberlain
Copyright 2019 | All Rights Reserved
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
