The last 20 years have seen a massive long-term upward trend in Melbourne property prices, punctuated by 4 periods of “correction” where prices have declined for a period before the underlying forces, particularly of population growth and low interest rates have restarted the market’s relentless climb. We have consistently said that the “perfect storm” that hit property prices from late 2017 was a correction not the “bursting of a bubble”. When we had the co-incidence of the election result, lower interest rates, APRA loosening bank credit requirements and increased first home buyer assistance a couple of months ago, we called a bottom in the market in this newsletter. And recent data has proven we were correct.
We believe prices will stay within a fairly flat band for a while before continuing their upward climb – probably some time into 2020 – it will vary somewhat by location and property type – and there are significant economic headwinds that will prevent any sudden recurrence of a boom.
So in general terms, we would be cautious about advising clients to sell at the current moment, but would suggest that the best buying opportunity in a decade is upon us for the next year or more. Prices have declined as far as they will and interest rates are at record lows. The most important decision still remains, as it always is, to buy the right property with the right underlying fundamentals, but now is the beginning of the best time to buy when such a property comes onto the market.
LongView offers a range of services to help you buy your next investment property including:
- Helping clarify your needs – what type of investment property will meet the capital growth and income needs you have and the place in your life cycle and family wealth plan
- Research to identify a range of properties on the market (from all the other agents, right across Melbourne) that meet your investment criteria
- Appraisal and Valuation of properties of interest to help guide your purchase decisions and price guides
- Arranging building inspections or assisting you to find mortgage brokers or conveyancers
- Negotiation to buy at, before or after auction
- Guaranteed Rent contracts which we can offer you before you buy any property so you know exactly what your rental income will be and your bank can get comfortable with lending as required
- Considering the Land Tax implications – highlighting where you might want to seek legal and accounting advice to ensure you structure your purchases with the lowest tax outcomes.
If you are ready to consider buying your next investment property, we’re ready to help you think and act. No rush. When you are ready, call Cath Stubbings on 0411 101 999 or Tim Beasley on 0401 834 474 and let’s discuss your needs. There is no charge for our advice.