I thought I’d share this article about property industry confidence, taken from the ANZ property council survey results.
It is interesting as these are usually VERY conservative and even reading through the ‘challenges’, it is very optimistic about what lies ahead for residential property. Bear in mind, these writers are talking with the Sydney market in mind particularly.
As discussed at our recent ‘Booming Brisbane’ event, the post-election positivity was already showing in the market place, not just in Brisbane but Sydney and Melbourne as well. Auction clearance rates are back up in ‘growth’ cycle mode down south and many pundits are talking about another mini-boom in Sydney.
Refer to OYSI reports going back over a year, remember we said that the Sydney and Melbourne boom cycle was cut short due to mainly lending criteria hammering buyers? Well, I am not there yet but I feel the slide back has finished and we may wander our way back out of the -14.5% of Sydney back to parity of where it was 2 years ago. I really don’t think it will be much more than that, maybe a bit better in Melbourne.
We have the recent stability of a re-elected government and the relief for some that CGT and negative gearing changes are not going to come into play, of course along with 2 interest rate cuts in 2 months and an easing of lending rules that are all very positive signs for property around the country, however, don’t get carried away. This week we saw some more lending restrictions relaxed which has increased standard borrowing capacity in some cases over $100,000 or more and creating wider lending options. However, servicing levels are STILL tight which is a good thing overall. Some poorly advised investors and greedy Sharks pushing the wrong property options need to be ‘managed’, to some degree as that is what helped cause the panic in the first place.
Yes, to consider Sydney and Melbourne property again but really, why would you?
Brisbane hasn’t had it’s normal post-Sydney growth phase yet and is only just getting started. Forget the usual 80% Brisbane boom, I am working on 30%-40% and considering you can buy good house and land in good areas for close to $400 000 and get roughly 5% yield, it is smart buying compared to twice that price and almost half that yield down South.
The getting is good so line your ducks up (numbers) and see a good broker to give you a borrowing capacity. Then carefully look for a location that ticks the boxes and good value… or just email or ring and we can help.
Stay warm wherever you are and don’t leave your decisions until every man and his dog is buying, get your bits together now!