The future of the property market has always been a controversial topic. Half the news outlets sensationalise the potential ‘catastrophe’ of a softening market, while others are upbeat. It can be hard to know what to believe. That’s why we’ve distilled all the information into key points for you.
First-time buyers looking to get their foot in the door of the property market will be the first type of homeowners to benefit from the softening market. Why?
Prices are on a decreasing trend at the moment and are the most affordable they’ve been in recent years. This presents an opportunity for first-time buyers to obtain property that was previously out of their price range. And, while the RBA is tightening lending laws, a number of banks are offering discounts for new customers. ANZ, for example, is cutting its standard variable rate for new low-risk borrowers like first homeowners with a deposit of at least 20 per cent. Mixed-use developments like The Spencer at West End in Melbourne and the residences at Ed.Square in Sydney are great examples of affordable off-the-plan apartments.
After a sharp fall in May Australian building approvals have rebounded, and point to an improvement in premium developments thanks to a resilient construction sector.
What does this mean?
There will continue to be new opportunities to downsize, as more luxury off-the-plan apartment developments hit the market in the coming months. The generously proportioned 2 and 3 bedroom offerings at Toorak Park in Melbourne and the boutique residences at Shoreline in Sydney come with all the bells and whistles that serve to marry lifestyle with liveability.
For many, investing in property has replaced investing in shares. There’s a good reason for this – Australia’s property market has proven itself robust and lucrative for savvy investors.
While all the talk of stricter lending regulations and doomsday talk of the future of the property market might scare people off, it’s important to realise that now is the time to buy, especially for those who are looking at committing to their first investment.
Now that you have the facts at your disposal, you can make an informed decision about buying or investing in off-the-plan apartments.
*Please note all financial advice in this article is intended as guidance only.