27 March 2013
Investors and Renters Agree – Buy Now A convergence of market factors has seen investors and renters increasingly looking to secure a property purchase for similar reasons. The Australian Financial Review has described the property market as being in the “sweet spot of low rates, rising rents and appreciating values,” which has motivated investors and many renters who are looking to capitalise on current conditions. With the HIA-CBA Housing Affordability Index reporting that Melbourne’s housing affordability improved by another 4.1 per cent in the December quarter, residential property is now at its most affordable level since the global financial crisis in 2009. The spate of interest rate cuts has seen the cash rate come down to 3 per cent – equal to the lowest level on record. Investors have already sensed their opportunity with investor loans increasing three times faster than loans for owner-occupiers in January. With the national median house price up by an average of 5 per cent, Australian Property Monitors forecasts Melbourne values will rise by around 3 per cent this year – further motivation for investors and buyers to act sooner rather than later. If you’re ready to invest or ready to leave the days of paying rent behind you, now’s a good time to plan your purchase. Call us today for a no obligation discussion to hear about great opportunities in your chosen neighbourhood and price range. Greg Hocking