Real Estate

The Best For Home Buyers

Author: Craf738

Why I think property is an astute investment in 2019

Interest Rates

The word is that US interest rates will increase and Australian banks have already started to raise their rates independent of the RBA’s moves. However, Australia’s cash rate sat at a historic low of 1.5% as of January 31. Even if rates did increase, along with the predicted US rates over the coming 12 months, by the end of 2019 they will still be comparatively low.

Demand is still high

Multiple publicly listed property developers noted that while the rate of price growth has slowed, pent-up demand remains strong.

But it’s important to note with a marketplace as wide and diverse as Australia that conditions vary amongst the capital cities and regional areas.

Banks have tightened lending on property development making it more difficult for smaller developers to access funds for projects. This means there will be less development and inevitably less housing coming onto the market over the coming years.

Bank funds readily available

Banks still view residential property as a solid long term investment: why else would they be prepared to lend you 80% of the purchase price? The mortgage investment sector is very competitive, which is good news for investors who have scope to negotiate rates below advertised levels. There has never been more choice of products, interest rates and banks to select from that are willing to lend against property.

We buy ugly houses in Winter Park

Long term investment

Imposts such as stamp duty make property a long-term as opposed to a short-term opportunity. We have seen the statistics that show over a 10-year period, property has the potential to double in value, equating to a capital growth of 7%, plus a net of 3% rental return – giving a solid 10% return over that period. You just need to be mindful that property works in cycles and although you may see extraordinary capital gain over a few years there will also be periods of little, zero or even negative growth.

Negative gearing (for the short term at least)

The Turn-bull Government has ruled out changes to Negative Gearing legislation which means – at least for the next couple of years – property investors will benefit from the tax savings. The tax benefits received assist the investor with the funding of the shortfall to hold the property longer term.

This is general information only. Always seek advice from your financial adviser to assess whether property is an investment you should consider, taking into account your individual situation.

Things to Consider When Choosing a Neighborhood

Do You Know What to Consider?

Depending on your family and financial situation, as well as your local property market, there will be a number of different things you look for when you’re buying a property. These factors can drive a price up or down, and perhaps even give you an edge at the negotiating table. Let’s take a look at what you should be keeping an eye on when you buy.

Schools

Everyone wants the best education possible for their children, and a lot of the time this means securing property in the zone of a great school.

Crime

A safe home is a great home. And while the Australian Bureau of Statistics noted a decline across 2013 for a wide range of offences, including robbery and motor theft, it’s still important to keep your family safe. Part of this is checking crime reports for a neighbourhood you want to buy a home in, and making sure it’s going to be a stable place to live.

Accessibility

If you’re in your older years, you’re unlikely to want a home with 50 stairs to climb to reach the front door! Likewise, if you drive, you need to make sure a driveway or garage is on hand as well. On top of this, you might want to check the main roads to your neighbourhood – are you going to be stuck in traffic on your daily commute to work?

Another important part of accessibility is public transport. Having bus and train lines run near your neighbourhood means easy access to all that your city has to offer – and less money spent on petrol!

Conveniences

Finding the right stores, markets and outlets that suit your lifestyle is crucial to picking a neighbourhood. Can’t go without your 8:30am coffee on the way to work? Then you’re going to need a neighbourhood with a good local cafe. If you only buy organic, then you’ll want a neighbourhood with a local farmers market.

Noise

While public transport is great, you might not want it right outside your door – the rumbling of buses and trains can be a pain when you want to sleep! The same goes for neighbours. Consider going for a late night drive through a neighbourhood on the weekend to gauge noise levels, and decide if you really want to move there.

Visuals

A daytime drive helps too: How does the neighborhood actually look to the naked eye? Are power lines blotting out the sky, or is it a paradise of rolling green parks? By digging in and looking around, as well as doing some research, you can find a neighborhood that truly meets your needs.

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