Wondering if now is the right time to buy property? There are a lot of varying opinions and sensational headlines out there. Here's what the data is telling us:
- Sydney and Melbourne prices have been falling, and will probably continue to fall. It’s an understandable correction after several years of exceptional growth.
- Most other markets are currently flat or growing steadily (think Brisbane, Adelaide, Hobart, Canberra, as well as plenty of regional locations).
- Growth drivers in lots of those markets are strong. Take Brisbane as an example - affordability, strong rent returns, population growth, plenty of infrastructure investment in the pipeline.
The interesting article below highlights the banks making life difficult to borrow at the moment, as a knee-jerk reaction to the royal commission, and how that is putting an artificial handbrake on growth (because when it’s more difficult to borrow, it’s more difficult to buy property, so not as many buyers are in the market).
However when the banks begin lending more freely (and they will - remember that’s how they earn their money), it’s easy to see how quality properties, in solid locations with strong underlying growth drivers, will push ahead with strong growth.
So if all the talk right now is about a sluggish property market, it is the perfect time to buy solid opportunities, ready to ride the next wave of growth.