What does the Real Estate Market have in store for the Australian Borrower in 2019?

2019 is likely to be an interesting year for the Australian economy. This year’s pending Federal election could present opportunities for judicious home buyers and investors with less competition at auctions. While people tend to sit on their hands in the lead-up to elections and despite market sentiment being unfavourable, the dedicated buyer is out there every weekend seeking to find that ideal property.

The property market remains a hot topic especially when it comes to Sydney and Melbourne. Over the past year, a combination of factors has come together to turn the housing cycle down and create a perfect storm for house prices in both the cities.

Australia has been the most popular investment destination in the Asia Pacific and it’s the perfect time to lay the groundwork to invest here. There are pockets of affordability in both Sydney and Melbourne. Entry-level two-bedroom flats are affordable on a typical income in a number of suburbs, and some suburbs even have entry-level three-bedroom houses that are relatively affordable for a couple. Simply enter some basic information and the home loan borrowing power calculator will give you an idea of how much you can borrow and what your monthly mortgage repayments might look like. However, this will be only a likely indicator while you will need to visit Your Finance Adviser for better understanding of the same.

You could also be captivated to invest in a commercial property and unlike standard residential home loans, the pricing and lending policies for commercial property loan can be negotiated much better.

Foreign citizens who want to buy or invest in residential property in Australia will now need to pay a stamp duty levy and, in some states, a land tax surcharge as well. As a result, its advantage for the first time homebuyers who get more opportunities to buy a property as the participation of foreign buyers at auctions has decreased.

Real Estate Buyers Agents Association (REBAA) president Rich Harvey stated that with interest rates earmarked to stay low and with fewer investors in the market, 2019 would be a great time for home buyers to move up the property ladder. The interest rates could stay on hold in 2019.

Negotiation will be crucial to securing a good deal so independent buyer representation from an accredited REBAA buyer’s agent is highly recommended. Investors who have finance approved, or are cash buyers, are encouraged to take advantage of softer market conditions.

Tips for Borrowers

1) Plan your budget

Start organising your funds in a structured manner to enable you invest in your ideal home.

2) Check your leases

Smart landlords study their existing lease details well before they are due to renewed. Residential vacancy rates, particularly in our biggest capitals, have been on the rise, so locking in good tenants on long-term leases will be advantage for the landlords, keeping you at loss.

3) Get informed on Sale price Vs Rentals

Being well informed about markets help investors spot opportunities quickly. There is no substitute for studying actual completed sales or rentals in a suburb across a three to six month period in order to paint a picture of a market’s direction.

4) Contact your advisers

This is the best time to ensure you have an experienced financial adviser aligned with your ambitions for the year. The loan market is positive to relax the lending policies and improve efficiency for first-time homebuyers.

Your Finance Adviser will assist you to find best home loan in Australia that suits your demand.