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The
Propertybuyer

Podcast

Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 14 Mar '25 with Rich Harvey Western Sydney - Outlook and Opportunities
 
 
Fri 21 Feb '25 with Rich Harvey How does property fit into your overall Financial plan?
 
 
Fri 7 Feb '25 with Rich Harvey How to Retire on $250k p.a.
 
 
Fri 24 Jan '25 with Rich Harvey Brisbane Property Market – Trends and Predictions for 2025
 
 
Fri 10 Jan '25 with Rich Harvey Melbourne Property Market Outlook 2025
 
 
Fri 27 Dec '24 with Rich Harvey How to Finance your Future with Property
 

 

Listen to many more
podcasts on our
Podcasts page.

 
 
 

Propertybuyer Blog
Property advice, market updates & more

 

Is It Worth Holding Off Until Next Year? - June 2022

June 1, 2022 / Written by Rich Harvey

 

By Guest Blogger, Daniel Gold, Finance Broker

Long Property

 

I get it… the media headlines are scary, interest rates are going up, and some experts are predicting a 10-15 per cent fall in house prices!

So, delaying your next property purchase, or at least pausing your search for six months, makes sense, right?

I actually have a number of clients very keen to buy now. Here are some of their reasons…

By waiting, the loan they qualify for might get reduced

  • My recent analysis suggests a 1 per cent rise in interest rates reduces borrowing capacity by approximately 10 per cent
  • The amount they’re pre-approved for is irrelevant, it’s the amount they qualify for once they’ve actually purchased which dictates how much they will be able to borrow
  • Consider the impact a loan reduction might have on their budget

They’re not up against much competition at the moment

  • From what I’m seeing and hearing, buyer enquiry is now well down on last year, and loan volumes are down too
  • How often does one get to buy well located residential real estate in Australia with minimal competition?
  • It only takes one or two others in a competitive setting to start driving up the price, and/ or to reduce the likelihood of being successful in a negotiation or at auction
  • What happens when all the buyers return?

Buying conditions in many areas have become favourable

  • I was having a chat with Rich Harvey (regular media commentator and founder/ CEO of propertybuyer) late last week and he mentioned a few things worth sharing…
  • He said construction costs have risen substantially which means that less properties will be building in the coming 2 years – thereby lowering supply

Rents are rising at their fastest rate in three decades. This means the yields for investors are rising, and for home buyers sitting out of the market means they will end up paying more rent

  • Rich said that during the past few months during his usual round of inspections and auctions, there is much less competition – less buyers at inspections and the volume of bidders has dropped dramatically. He said agents are wanting to wrap up deal’s pre-auction. Rich said he has already seen prices come back 7% to 10% in most areas.

 

For everything working against the property market at the moment, there’s some good news too. Wages are rising and Australia's unemployment rate has dropped below 4 per cent for the first time since the mid-1970s.

Households accumulated c $240 billion in savings during the pandemic, and on average borrowers are ahead on their mortgage repayments by about two years [1]. The economy has strength, and most consumers have a healthy balance sheet (or are ahead on mortgage repayments).

It’s not easy finding a great property. But for those who do, if they’re not overstretching, and if they’ve got a longer-term view, then I can definitely see the sense in transacting while the market takes a breather.

---

[1] Households have prepared for incoming rate rises: RBA, Money Management, 4 May 2022

 

Daniel Gold is an investment savvy finance broker specialising in residential real estate. He is a rising star in the industry and for the past several years has been recognised by Mortgage Professional Australia as being one of the top mortgage brokers Australia. Visit www.longproperty.com.au

 

 

  To have one of the friendly Propertybuyer Buyers' Agents to contact

you in regards to buying property :

Send us your property brief   or

call us on 1300 655 615 today.

The Propertybuyer
Podcast

 
Fri 14 Mar '25
with Rich Harvey
Western Sydney - Outlook and Opportunities
 
 
Fri 21 Feb '25
with Rich Harvey
How does property fit into your overall Financial plan?
 
 
Fri 7 Feb '25
with Rich Harvey
How to Retire on $250k p.a.
 
 
Fri 24 Jan '25
with Rich Harvey
Brisbane Property Market – Trends and Predictions for 2025
 
 
Fri 10 Jan '25
with Rich Harvey
Melbourne Property Market Outlook 2025
 
 
Fri 27 Dec '24
with Rich Harvey
How to Finance your Future with Property
 

 

Listen to many more
podcasts on our
Podcasts page.