Invest
Is it time to buy property?
While an increasing number of Australians think now is a good time to buy property, economists appear to be less convinced.
Is it time to buy property?
While an increasing number of Australians think now is a good time to buy property, economists appear to be less convinced.
Finder has revealed that only 17 per cent of economists think property is currently affordable in Australia, falling from April’s high of 59 per cent.
According to KVB Kunlun chairman Peter Boehm, the rate cuts are doing more harm than good for the housing market.
“House prices have been increasing (making it harder for first-time buyers to get into the market), existing mortgage holders are maintaining repayments at current levels to help reduce their debt quicker, and therefore not spending this ‘freed up’ cash,” he said.
Insights manager at Finder Graham Cooke believes economist have not been persuaded by rate cuts when it comes to affordability.
“Housing affordability cuts both ways,” he indicated.
“When it is high or economists feel positive, property prices can be relatively low, meaning more Aussies have a chance to buy. The flipside of course is home values might be trending in the wrong direction, and no one wants to catch a falling knife,” Mr Cooke said.
Despite economists believing it’s a bad time to buy, consumer sentiment would indicate the reverse.
In October, 59 per cent of consumers said it was a good time to buy property, up from 54 per cent in May.
Mr Cooke said consumers are likely responding to the positive news they are seeing about house prices in Australia.
“Buying property is still considered ‘safe as houses’ in Australia, but it’s taken with a grain of salt in many countries since the global financial crisis.”
“House prices don’t always rise, and the economy doesn’t always perform well,” Mr Cooke warned.
So is it a good time to buy or not?
While nobody knows if the property market has turned a corner, or if the current price boost is simply a dead cat bounce, Mr Cooke believes it’s more likely price growth will continue to be seen.
He also commented that buyers looking to get into the market may never have a better time, with historically low interest rates making credit cheap.
“First-time buyers with a deposit saved may miss the good-value window if they don’t get into the market soon.”
“If we keep seeing prices increase as dramatically as they’re doing now, the market will have fully recovered within a year,” Mr Cooke said.
He also advised that anyone looking to save for a deposit for a home is better off moving to a smaller bank that offers a better rate on their savings.
“You’ll find better ongoing rates with smaller banks such as UBank and ING and neobanks such as 86 400 and Up than you will with the bigger banks,” he offered.
According to Mr Cooke, “a little bit of homework can go a long way to boosting your deposit”.
About the author
About the author
Property
5 ways to use COVID-19 to your property-buying advantage
With the recent revelation that Millennials believe the COVID-19 crisis has made their goals of property ownership more likely to be realised, there are a number of ways would-be buyers can take advan...Read more
Property
Why is Melbourne property falling more than everywhere else?
The fallout from COVID-19 has seen Melbourne property markets fall by 2.3 per cent, making it the worst-performing capital city, new research has shown. ...Read more
Property
More power to Millennials as property ownership proves possible
Nearly half of home-buying Millennials believe the COVID-19 situation has actually made home ownership a more achievable goal. ...Read more
Property
HomeBuilder prediction: 8 suburbs set to boom
There are eight areas that “are about to blow up”, thanks to the advent of the federal government’s HomeBuilder grant, according to a property professional. ...Read more
Property
Hot Property: Biggest headlines from the week that was
It’s a new financial year and some Victorian areas have re-entered stage 3 restrictions due to COVID-19: Here are the biggest property stories from this week. ...Read more
Property
Property market dips for second straight month
Falls in national house prices accelerated over the month of June, with the September cliff still looming, new research has shown. ...Read more
Property
COVID-induced job losses ‘less likely’ to hit borrowers
Government support and a banking system that is allowing members to defer loan repayments has led to a milder than expected mortgage delinquency rate, which could offset the impact of job losses on th...Read more
Property
Investors need structured, technology-based approach to data to succeed
Investors who want to be in the top decimal of property investors are being advised to focus on big data as a means to differentiate themselves from the rest of the group. ...Read more
Property
5 ways to use COVID-19 to your property-buying advantage
With the recent revelation that Millennials believe the COVID-19 crisis has made their goals of property ownership more likely to be realised, there are a number of ways would-be buyers can take advan...Read more
Property
Why is Melbourne property falling more than everywhere else?
The fallout from COVID-19 has seen Melbourne property markets fall by 2.3 per cent, making it the worst-performing capital city, new research has shown. ...Read more
Property
More power to Millennials as property ownership proves possible
Nearly half of home-buying Millennials believe the COVID-19 situation has actually made home ownership a more achievable goal. ...Read more
Property
HomeBuilder prediction: 8 suburbs set to boom
There are eight areas that “are about to blow up”, thanks to the advent of the federal government’s HomeBuilder grant, according to a property professional. ...Read more
Property
Hot Property: Biggest headlines from the week that was
It’s a new financial year and some Victorian areas have re-entered stage 3 restrictions due to COVID-19: Here are the biggest property stories from this week. ...Read more
Property
Property market dips for second straight month
Falls in national house prices accelerated over the month of June, with the September cliff still looming, new research has shown. ...Read more
Property
COVID-induced job losses ‘less likely’ to hit borrowers
Government support and a banking system that is allowing members to defer loan repayments has led to a milder than expected mortgage delinquency rate, which could offset the impact of job losses on th...Read more
Property
Investors need structured, technology-based approach to data to succeed
Investors who want to be in the top decimal of property investors are being advised to focus on big data as a means to differentiate themselves from the rest of the group. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.