What awaits in 2015?

Talk amongst the big four banks of an expectation of one or two more official rate cuts next year will directly impact the market. It’s important to remember that rate cuts indicate a slowing economy, so you need to be careful with major financial decisions. If you are very secure in your employment then further reduced rates will provide an exceptional opportunity to invest and/or pay down debt.

What awaits real estate

Australia’s education, lifestyle, economic and political stability will continue to attract foreign investors and owner-occupiers.

A surge in new apartment developments in Sydney and Brisbane will increase supply but it appears demand will be ample to meet it – at least in 2015.

New product often pushes prices up and sets new benchmarks for apartment values across the board.

 

Prestige property is yet to have its first major run in this boom period. Banking and finance executives are once again receiving bonuses and upgrading their homes and ex-pats are returning to buy – even if they don’t intend to return to Australia as yet.

The ongoing trend in using self-managed super funds to invest in property will continue. Australians are still getting their heads around running their own super but the great thing is it’s providing funds to people who might otherwise not be able to invest, particularly younger Australians.
Australia’s underlying housing shortage, coupled with ongoing population growth, will continue to underpin property prices and growth.

Cash and term deposits have become unattractive compared to the reliability and safety of bricks and mortar long term. Share market losses in the global financial crisis remain fresh in people’s minds and the property boom has reminded them of the power of capital gains

Record low interest rates and strong rents are giving investors a rare opportunity to invest in major capital cities at close to neutral or even positive gearing. It’s a phenomenal opportunity to pay more into new loans during their most expensive phase – the first five years when you’re paying much more interest than principal
It’s been an incredible year in real estate and there is much more excitement to come in 2015.

For any further details please contact the sales office.