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
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more