Australia’s surging property prices are all over the news, with the median house price in South East Queensland – especially the Sunshine Coast – skyrocketing. But what does this mean for buyers?
If you already own or are about to purchase property, it’s not such bad news. But those who haven’t had a chance to break into the market yet may have already been priced out.
The fear of not being able to build their dream home has seen keen buyers camping out in front of land sales offices the night before land releases, just to try to secure one of the few available blocks of land – but still missing out.
The Reserve Bank has indicated that it’s not going to increase interest rates for the foreseeable future. The low cash rate is one of the key reasons our economy is recovering from the pandemic at a blistering pace, so it’s not likely to rise for the next two to three years.
The most likely scenario if prices do not begin to stabilise in the near future is that banking and financial services regulator APRA will simply make it harder for buyers to secure finance. There are a number of ways it can do this, including capping loans to investors or making it harder for investors to secure finance. The latter is probably the least controversial step it could take.
If you’ve already secured finance and are in the process of purchasing an investment property, congratulations – you can sit back and enjoy the ride.
If your finance is approved but you are looking for quality investment property with a high rental yield, email me here.
If you’re thinking of getting into the market to capitalise on the current property boom and potentially make over 10% pa on your investment in the coming years, be sure not to wait too long.
I can point you in the direction of a highly qualified, independent mortgage broker who can help determine your borrowing capacity and if you would qualify for an investment loan.
Keep in mind that if you are living in your own home on the Sunshine Coast, then it has probably gone up by about 20% over the past 12 months - and you can almost certainly use this equity as a deposit for an investment property so you, too, can enjoy the benefits of this staggering capital growth.