These three groups of property buyers should act now.
After its best performance in decades up to the first quarter of 2022, the housing market has started to stall. High demand for building materials, the RBA’s cash rate hike, and delays in building completions have all affected the confidence of the market. However, as data from Corelogic shows, there are still great opportunities for three main groups of property buyers – downsizers, investors, and those with cash reserves.
People looking to sell their large property and move into a more manageable space are in luck. House prices are still around their 2021 peak, and while they are starting to fall, apartments are still good value, as the right graph shows:
Downsizers are in the best place to capitalise from the excellent performance of the housing market over the last 24 months, and should consider making the move while they still have the best chance of maximising this opportunity.
More and more investors have been putting their money into the housing market in the last 18 months, motivated by the low supply of rental properties driving up rental income and yield. With rent prices trending higher, investment property ownership is a great strategy for those looking to maximise cash flow and balance their asset portfolio.
Cash rate hikes, quantitative easing, and inflation have taken their toll on the frugal, who are seeing their life savings frustratingly depreciate. Saving for a rainy day is good advice, but it doesn’t let your money grow like it ought to. Transferring cash into assets is still the most effective way to ensure long-term financial security, and no asset is better for this than property. With prices stabilising across the nation, and rents increasing, it’s the perfect time for those with cash reserves to let their money work harder for them in the property market.
To find out the best strategy for you, don’t hesitate to book a free consultation with our property expert.