Is now a good time to buy
I read a heap on
Largely their information is right, and what they sell you is ok, but not great as it is usually about what is best for them rather than you.
I read one blog this morning from a marketer that I have pasted below as what they are saying is about right… I agree SEQ properties are likely to grow by around 50% over the next 3 years (my call is a little more conservative, I think 30% to 40% is good enough).
BIS Shrapnel forecast recently a 20% growth for Brisbane over the next 3 years. They said the same about Sydney just before it grew by 80% so I think let’s just say, those of us who have
Where do you buy?
How do you structure your loans?
Do you buy old or new?
I help people buy Investment Properties all the time and am always watching them jump at pink poodles (a good deal that caught their eye – read about them in my book, How to Jump into Property Investing without being eaten by Sharks). Often it is an older house just down the road from where they live, why? Because it FEELS safe.
Ask me how, what and why, and I will share what I know – but avoid shopping online or worse still, swimming with the sharks.
Some key takeaways
Read below the dot points from one of the marketers highlighting why it’s looking good for taking action now…
The perfect storm has led to these unprecedented conditions. It’s all in the numbers:
- Australia is returning to surplus. We will report our first current account surplus since 1975! Mining production is underpinning strong revenues that other countries are envious of. It’s a golden era for us.
- Record growth in population, jobs and infrastructure spending. Last year a 404,000 increase in population, mostly to capital cities. We created 230,100 jobs and replaced nearly 300,000 Australians who retired. SEQ’s infrastructure spend is up $10bn.
- Tax cuts. At last we have a government who has the numbers in the upper and lower house to deliver change. Tax cuts this year and next sailed through.
- Banks are back lending after a near 2-year hiatus by APRA requiring servicing calculated at 7.25% interest rates. That was abolished in July.
- Cash rate is at 1.00% and with sentiment, it will drop further. Reserve Bank Governor says ‘get used to dirt cheap money’ in relation to interest rates. Wow.
- Retirees desperate for yield are driving equities to record highs, and real estate to follow and it should. Retirees will get less than 2% in the bank with no growth, yet they can buy residential property, which is returning at least 4% and as high as 6% (with dual occupancy). All before they get capital gain.
- Auction clearance rates in the main capitals have shot straight back to almost 80%. Stunning turnaround.
- First Home Buyers are back in the market, with 10,000 of them receiving 5% of their deposit paid by the government.
Stock on the market is very low, and with the banks not lending for so long, the approvals and future supply are very tight.