Page 3 - Newsletter Issue 9 - January 2020

Where are house prices headed in 2020?

2019 was a wild year for the Australian property market. interest rates continue to fall, however less significant
After experiencing two years of house price declines, the increases are also a possibility, particularly if the APRA
market finally found its floor in June (according to CoreLogic decides to intervene or if there are unfavourable economic
data) and has been seeing a steady lift in house prices since. conditions such as international trade tensions.
But will the market continue to sizzle its way through the Affordability may become an issue again
rest of this year, and should we prepare for more boom With property prices looking set to make a full recovery in
times?
2020, affordability is going to be a concern.
Prices to continue to bounce back
For those in a position to buy a property it may be best to
SQM Research’s annual Housing Boom and Bust Report get into the property market sooner rather than later.
predicts that most Australian capital cities will see price
Property prices are currently as affordable as they are likely
increases in 2020, spurred on by low interest rates and to be for a while, so it’s a good opportunity to get into the
relaxed credit conditions.
market, particularly while interest rates are low too.
SQM’s base case forecast is for dwelling prices to rise For first homebuyers concerned about price increases it may
between 7 and 11 per cent. Sydney and Melbourne will be
be worth checking to see if you’re eligible for the federal
leading the charge with Sydney property prices expected to
government’s First Home Owners Grant Scheme or for state
go up between 10 to 14 per cent, and Melbourne property government grants or concessions that can help you get
prices to go up by 11 to 15 per cent next year.
your foot on the property ladder sooner.
There’s a chance that house prices could rise higher still if
SOURCE:- ProNews January 2020

Will you be looking for a new property

this New Year?

The new year is often a popular time to look for a new
home, and with low interest rates and favourable
buying conditions, there’s probably no better time to
look at making your property dreams a reality.

Looking for a first home?
If you’re looking at getting your foot on the property ladder
then the best thing you can do is to get on top of your
savings.
Looking to invest?
Spend some time doing up a good budget and make sure you
If it’s an investment property you’re looking to purchase
can stick to it. Try to cut back in some areas to help get
then you’ll want to start by doing as much research as you
ahead on your savings.
can. You’ll want to become very familiar with the area you
Setting up good savings habits will have you on your way to a hope to buy in so you can spot a bargain when you see one
healthy home deposit sooner, and will show to lenders your and figure out if there is anyway you can add value to the
ability to make repayments. property.
If you already have a deposit at the ready then you may When it comes to investing there are a lot of different strate-
want to start talking to lenders and mortgage brokers to get gies that can work, but capital gains is normally the goal. Be
an idea of how much you can borrow so you can start on mindful of balancing the best property you can afford with
your property hunt. financial stability. You will probably need to hold the proper-
ty for some time to get decent gains so you want to have
Looking for your next home? decent cash flow while you do.

If you already own a home then buying a new property is a
little more complicated because you will also need to either
rent out or sell the property you already have.
It may be a good idea to call up local real estate agents for a
property appraisal to can get an idea of the value of your
home if you were to sell. This can help inform you of how
much you would have to spend if you purchased another
property, and you will also be able to get tips on how to go
SOURCE:- ProNews January 2020
about increasing your current property’s value.