Market Update

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What everybody ought to know about the Australian property market

houseThe Australian property market has never been in better shape since the meltdown and this may just be the best time to secure or expand your investment portfolio.

An article on the Property Showrooms asserts that the market will shift gears and quicken after the Federal elections. House prices have hit the plateau and interest rates are delightfully low, it contests.

Low interest rate to positively leverage borrowing capacity

Though there is enough evidence of spiking prices here and there, the housing market is closing on a price plateau. This means that investors are just ready to take advantage of the situation. In such times, lesser interest rates would positively leverage their borrowing capacity. Coming to think of it, what can be better for the property market than the fact that its First Home Buyers are able to fetch properties at 5% interest? Well! This beats any Grant for sure according to the article.

Lack of buyer confidence suggested

The only thing probably missing from an otherwise perfect recipe is buyer confidence. Though the well-performing stock market has boosted it to a certain extent, it is likely to reach a high only after the Federal elections according to the article.

Amidst rumours of lack of housing affordability, it is important to clarify that the affordability equation is in its best shape, keeping the last 10 years in mind.

Australian property market 18th most successful

With a 2.6% hike in property prices over the last year, Australia has been declared the 18th most successful housing market in the world. If entrepreneurs like John Symond are to be believed, this is the time to extract maximum benefit out of the Australian real estate scene. Yes, one has to look at it from the viewpoint of an investment and not a quick-buck solution. You can read the full article here.

Budget deficit holds the key

In my opinion, the article adequately illustrates a few important points but I do not feel that the Federal elections would hold as much clue for buyer confidence (as suggested). Already, the Federal budget has turned volte-face on its promise of a budget surplus and this has provided enough reasons to be confident about the property market. An intelligent investor knows how a forced budget surplus would have tightened the fiscal policies whereas a deficit-declaration would allow inflation and interest rates to keep trading at historic lows. This low interest-low inflation combination along with a resounding stock market is enough to give the investors the right push.

How do you feel about the Australian property market, or more specifically the Sydney property market of today?