With property prices stabilising, you might think it’s a bad time to enter the property market. Well, the information below may just change your opinion on that.
What stops people from buying property is fear. The fear of paying too much, the fear of making the wrong decision or the fear that the market may crash. But even if prices are falling right now, that’s no reason to be fearful. It is important to understand that when it comes to property you are not in the game of picking the top or the bottom of the market, no one can do that.
Despite the falling prices, property is a long term investment and over time, prices will rise.
So picking the right time is not as important as you might think.
So why is now a good time to buy?
There are a number of factors that will lead to higher prices over the long term. Here’s just a few:
1) Population growth.
Australia’s population is forecast to grow by three to four million people over the next ten years. This is equivalent to having to build another city almost the size of Melbourne to house all these people. Did you know that Australia’s population growth is faster than India or Indonesia? More people translates to more demand for property.
2) Low interest rates.
Low interest rates make property loan repayments more affordable. The low interest rates is the reason why property buyers can afford to borrow more today than they ever could. It is important however to allow some buffer when calculating your repayments for the likely event that rates will rise over the time of your loan.
3) Self-managed super funds.
Today more than ever we have seen a large increase in people investing through their self-managed super funds, which again results in more demand for properties. APRA March Quarter 2018 indicated superannuation assets totalled $2.6 trillion with a large share of that being invested into the property market.
4) Low unemployment and increased incomes.
Low unemployment and a potential increase in incomes will likely drive ongoing price growth.
When you consider the above factors, it’s not unreasonable to expect that prices are going to rise over the longer term.
If you have been thinking of buying a property, our team will be able to assist you in making the right decision. Please contact us on 03 9840 7700.