Invest
Is now a good time to be buying property through my SMSF?
With the balance between buyers and sellers now shifting back towards the buyer, prospective investors should keep a close eye on the housing market for opportunities.
Is now a good time to be buying property through my SMSF?
With the balance between buyers and sellers now shifting back towards the buyer, prospective investors should keep a close eye on the housing market for opportunities.
The pace of capital gains across the housing market lost steam over the second half of 2015. Over the first six months of 2015 capital city dwelling values rose by 5.1 per cent and by the end of the calendar year the six -month rate of growth had roughly halved to 2.6 per cent after values reduced by 1.4 per cent over the final quarter of the year.
The slowdown in growth was evident mostly in Sydney and Melbourne, where housing conditions were previously booming, but Perth and Darwin, where market conditions peaked in 2014, are also winding down. In fact, Perth and Darwin were the only two capital cities to record a negative annual movement over the past 12 months. Sydney and Melbourne still stand out as showing the highest capital gains over the past year, with values up 10.5 per cent and 11 per cent respectively; however, both cities recorded a negative movement over the past three months.
As growth conditions wind down, we are seeing conditions around home buying starting to improve. Stock levels, based on the number of homes being advertised for sale, are higher than a year ago across every capital city except Hobart. At the end of January the number of homes available for sale was almost 5 per cent higher than a year ago nationally and 9 per cent higher across the capital cities. This means more choice for buyers and less negotiation leverage for sellers.
Generally, buyers should have more options around properties available to buy; they should have more time to do their research and due diligence; they should be able to negotiate harder to achieve a purchase price that fits their budget. In a market with more buying options, if a vendor is unwilling to budge enough on the contract price, a prospective buyer can more easily move on to another property.
On average our statistics on selling time confirm that homes are taking longer to sell. The average time it took to sell a property in December last year was 41 days compared with 39 days in 2014, and discount rates have increased from 5.7 per cent to 5.9 per cent meaning vendors are starting become more flexible on their price expectations.
When housing market conditions were stronger and values were rising quickly, vendors had all the leverage and buyers had to make their decisions rapidly otherwise there was a high likelihood the home would be sold to another buyer.
Dwelling values may fall further during 2016, however our view is that the downward phase won’t be severe with housing demand buoyed by an ongoing low mortgage rate environment and relatively steady economic conditions.
Tim Lawless, CoreLogic RP Data research director
Property
Millennials believe first home buyers need more support
Australia’s up-and-comers in the housing market say more needs to be done to slow rising house prices. ...Read more
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Property
Millennials believe first home buyers need more support
Australia’s up-and-comers in the housing market say more needs to be done to slow rising house prices. ...Read more
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
