There has been a lot happening in the investment sector of residential investing over the past 2 years. With the banks tightening lending for property investors about 2 years ago due to APRA (Australian Prudential Regulation Authority) requirements, a lot of ‘would be’ investors were no longer in a position to be able to buy an investment property, or add to their portfolio as lending to investors was restricted.
However, banks recently met the requirements of APRA (Australian Prudential Regulation Authority), which means restrictions have been released and the banks are now encouraging residential property investors to buy again and offering investor loans at around 3.99% – this is fantastic news for those wanting to buy their first investment or add to their portfolio. And, timing couldn’t be better. We are seeing astute investors snatch up quality properties as they are making quick decisions, whilst others are sitting back waiting to see what happens and missing out on great investments.
I anticipate the new financial year will see a rejuvenated property market. Many buyers and sellers have been holding off to see what happens. Stock levels have been tight, and whilst prices have steadied and in some cases pulled back a bit, my prediction is that the new financial year will see more buyers and sellers ready to make a decision – those that sit back and wait may well miss out on some great opportunities.
Over my 22 years in real estate I have been fortunate to make good money out of buying and selling property. My experience has taught me that you can’t really go wrong in this area if you are planning to keep a home for 3 years or more. Even if you think you’ve paid over market (which I think I’ve done at times to secure the right property), you will not regret a purchase if it’s a house you love, or a quality investment.
The rental market has a real shortage of quality family homes, particularly 4 bedroom, 2 bathroom homes – so if your budget will stretch to around the $800,000 mark then I highly recommend you look to buy a family home as an investment. Even if it needs new carpet and paint to freshen it up – you will never have trouble letting it.
Elaine or I are happy to take a look at a property you are considering purchasing to give you our recommendations and also a realistic rental appraisal. We can be contacted on:
Elaine 0438 329 261 Tamara 0408 585 319