With the great news yesterday that the RBA have put a pause on interest rates many are asking have prices bottomed out.
With the great news yesterday that the RBA have put a pause on interest rates, many are asking have prices bottomed out? I have been in the property industry for 50 years and I have never been able to pick it and nor have most of the supposed experts in the industry. However, this time around, we are in a very different position from when we have had down turns in past years.
We have the biggest shortage of housing in our country’s history and historically high levels of migration. We are expecting a net 705,000 migrants to arrive on our shores over the next 3 years. of this number it is expected that more than half will call Victoria home due to employment opportunities and cheaper house prices than Sydney. Where will we house all these people? Clearly, we need to build more homes, so based on this I believe we are currently witnessing the bottom of the market and the savvy ones will commence buying once again.
If you are considering buying land on a new residential project, then it is a great time to buy. You should aim to buy a block of land off the plan. You pay your deposit today and lock in your price, you will then not be required to pay the balance until the roads are constructed and the titles are issued. This should take between 12 to 18 months. By this time, it is expected that interest rates will be reducing, and new home builds are predicted to become cheaper as the trades people rates and building material prices drop.
Because of the massive shortage of zoned residential land, I believe prices will rebound as demand increase to meet the needs of the already severe shortage of housing, combined with the needs of migrants.
