Now you’ve come to the same titular question because you’re looking to buy or invest in a property soon, right?
Australia is easily one of the top destinations for many expats, especially British who are lured by life Down Under. However, it’s vital not to get wrong-footed by the practicalities of settling in a new country– it’s not all that easy, or cheap, to head back to your hometown if you miss it.
The last quarter of December saw house prices are falling, with tens of thousands of dollars wiped off the values of homes across the country. In fact, owners have been in panic mode for much of 2018 as both Melbourne and Sydney’s housing industry took multiple hits.
The improving situation for buyers
Previously, the focus was for struggling first homebuyers are being priced out of the market because of cashed-up, greedy investors in the biggest cities like Sydney and the haphazard demands for action on housing affordability.
Sydney prices have now become like the level of August 2016, and Melbourne is back to the prices of February 2017 while Perth has not seen houses this cheap since 2009, and Darwin since 2007. Most regions in the country have reacted to tighter credit conditions by showing weaker housing market results. Buyers will be in the driver’s seat when the time has come to choose a property and negotiating on price.
Prices dropped 4.8% in 2018 nationwide, which prompted Deutsche Bank to recognize a possible Australian housing crash as one of the top 30 risks to the global economy. The biggest yearly falls in Sydney on a suburban level were in Ryde (13.3%), the inner south-west (10.9%), Sutherland (10.9%), Hawkesbury (10.8%) and Parramatta (10.7%).
However, while purchasing a property in Sydney and Melbourne today is still far from a cakewalk, this is a clear sign that things are improving for potential buyers, whether for ownership or investment.
So, is this the time to purchase property?
The current decline in Australia’s property market, particularly Sydney and Melbourne have been causing potential buyers to get excited about choosing their home. Property consultants agree that the power has returned to the buyers.
Plus, there are so many properties on the market currently that real estate agents are not holding as many auctions since there is no longer a competition between the buyers. However, if you’re a buyer in the current market, the suggestion is to find the right property and after doing that, negotiate since the power is in your hands.
However, take note that investing is based on a long-term approach, rather than speculating if the next two or three years will bring a huge windfall.
Property is a long-time investment, so you shouldn’t look at property mainly to get rich overnight. If you want to acquire a house and think the value will significantly go up in the next one or two years and that you would make a decent profit out of it, then you need compare home loans from industry-leading lenders.
To get started, click here to compare home loans offered by Newcastle Permanent, one of Australia’s top lending institutions.