If you haven't been hiding under a rock lately, then you would have heard that the housing market is in decline. This is not entirely true. If you own a house in the city of Sydney, Melbourne or Perth, then yes, it's all doom and gloom however, if you own property in Brisbane, you can count yourself lucky because the market is about to turn around. THE PROPERTY INVESTMENT CYCLETo understand why I say this, let me show you this image of how the property investment cycle works: * Source - Cherie Barber (Renovating for Profit) The Brisbane housing market is about to jump from the slump section of the graph, to the recovery section. We've already seen property prices fall, high rental vacancies, tradespeople advertising for more work, and at the moment there are more properties on the market than late last year and we are starting to see more buyers at our open homes again. Therefore, over the next few months, we are tipped to see rental increases and low rental vacancies, housing levels tightening and prices rising yet again. Now, as no one can predict the future, whether this takes 3-6 months or 1-2 years, is still to be seen. Usually a property cycle lasts 7-10 years, so those who have bought a property in the past 5 years, will have done quite well for themselves in regards to gaining equity in their homes. THE DECLINE IN BRISBANE UNITS AND TOWNHOUSESThe past year has seen a decline in townhouse prices and days on the market, as the market was saturated with apartments for sale. There wasn't a big demand for units and townhouses in Brisbane, as property developers were building them quicker than we could say "luxury apartments". However, it seems that the market has finally caught up with the property developers and units are becoming in demand again, as buyers are wanting to buy a property close to the city but can't afford the hefty house prices that come with it. We are starting to see Brisbane units and townhouses with higher listing prices, shorter days on the market and multiple offers popping up here and there, and in my opinion, prices will start to climb for these kinds of properties before the year is out. Image: Penthouse for sale in Brisbane 1, South Brisbane WHEN IS THE RIGHT TIME TO BUY?A lot of people are hesitant to buy when industry experts are saying that prices are dropping, as buyers are waiting for the bottom of the market to hit, but the sad news is that no one can predict when the market will hit rock bottom. If you keep waiting for prices to go down even further, chances are that they will come back up again and you'll have missed your chance to secure a property for a good price. The best time to buy a property, is whenever it suits your needs. If you're looking to purchase a house to add to your portfolio and you keep waiting for the perfect time to come along, you will probably miss out on a lot of benefits while you're waiting. Savvy investors need to block out a lot of what the media is saying and purchase properties based on what's right for them at the time. If you're a buyer who's looking to renovate and create some equity in a property, now is a good time to enter the market, while prices are still low. Houses can be renovated, held and rented out until the next property cycle hits and sold for a profit or re-valued and be used a stepping stone to purchase another property. WHAT MAKES A GOOD INVESTMENT IN A DECLINING MARKET?We currently have a few good investments listed for sale including some new developments, which are due for completion soon, which come with a rental guarantee for investors. If you purchase these properties in a declining market, when the market goes up again, your property should increase in value too.
If you would like some advice on purchasing a property or would like to see what we currently have on the market, please give Kelly Pack a call on 0414 520 853 to discuss your needs. If you're looking to add to your rental portfolio, we have some fantastic off the plan investment opportunities at the moment, some even come with a rental guarantee of 6% for 2 years. Enquire now while prices are still low and you never know, if you get in soon, you could gain some equity quite quickly while you're earning an income in the process. Please feel free to comment below or get in touch with me.
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AuthorKelly Pack is a Real Estate Agent in Tarragindi who gives her time to the community and helps people sell, buy and lease their homes. Archives
November 2020
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