18 Feb Get on Board – the Property Boom is Here
At Power of Property, we always say that the best time to buy an investment property in Australia is now. As we move into 2021, this is more true than ever, as all the indicators suggest that we are at the beginning of the first real house price boom in a generation.
House prices to rise by 16% according to CBA
The Commonwealth Bank (CBA) has forecast significant price rises over the next two years, with house prices set to increase by as much as 16%, and units predicted to rise in value by up to 9%, with an overall average rise in all dwelling types in capital cities of 14.4%.
These forecasts have been based on continued low interest rates and a subsequent growth in new lending, plus the fact that the impact of coronavirus on house prices has not turned out to be as significant as had been expected.
The CBA also reports growing confidence amongst prospective buyers, which is in turn encouraging other new entrants (including increased number of investors) into the market.
Capital city forecasts 2021-2022
Prices across the country are predicted to rise throughout 2021 and 2022, and so this is why now is the optimum time to buy an investment property if you are looking to grow capital and build your wealth.
However, it’s not just cities where prices have already begun to shoot up. Regional prices rose by 1.6% in January 2021 alone, which is ahead even of the state capitals.
Property investors now entering the market
It is being widely reported in the press that properties are frequently selling almost as soon as they are listed (sometimes even before this), commonly for amounts well above the asking price. This has resulted in greater numbers of investors coming back into the market (price growth in 2020 was largely on the back of owner-occupiers, including first time buyers).
A number of other economic factors are also contributing to an increasingly buoyant market for investors. These include widespread confidence about the national economy picking up faster than many experts predicted, a willingness of banks to write new business, and interest rates expected to remain at historic low for up to three years.
However, all of these encouraging factors means that there is likely to be increased competition amongst a growing number of investors, so now is the optimum time to take advantage of what looks set to be a major property boom over the next two years.
Don’t get left behind! Make an investment property your goal
Now is the time to get ahead of the market and get onboard at the outset of what looks set to be a resurgence for real estate investing in Australia. All market indicators suggest that there hasn’t been such a favourable time to buy an investment property or further grow your property portfolio for many years, so don’t miss out on getting in at the beginning of the predicted boom.
Our expert property strategists can advise you on areas of the country where there is likely to be the most significant growth in prices and demand. In addition, our experience and expertise means that we have access to information about new property developments across Australia that isn’t always widely available to the individual investor.
If you want to find out more about how to be a part of Australia’s next property boom, call Michael Lawton on 0407 785 560 or Danielle Charlton on 0411 268 795, or book an online property strategy session today.