Now the time for home buyers to enter the market
March 28, 2014 / Written by Rich Harvey
If you're looking to buy a house in Australia, entering the market sooner rather than later would be a wise choice.
The inaugural Smart Property Investment/PIPA Property Investor Sentiment Survey shows that a majority of real estate investors are looking to buy at the moment.
In fact, 70.8 per cent of investors are looking to make a purchase.
"Property markets across Australia have really gathered momentum since the latter part of 2013 and all indications are, from this research, that this is set to continue," said Smart Property Investment Managing Editor Phillip Tarrant.
"The low interest rate environment is certainly underpinning this trend, but it's also interesting to see investors confident in property's capital growth prospects and its recognised stability compared to other investment assets. It's a real vote of confidence for Australia's property market."
While it's great news for average home buyers that the property market is stable and providing safe investment, current activity also means families are competing for homes with a large number of investors.
Meanwhile, data from the Housing Industry Association (HIA) and Commonwealth Bank indicates that housing affordability may have peaked, with the December 2013 quarter seeing a decline in low-cost housing.
While record-low interest rates are making it easier for home buyers to obtain finance, it's also spurring on plenty of investors who are pushing up property prices.
HIA Chief Economist Harley Dale said it's likely that 2014 will see "further gains in residential property prices".
This is even more likely in hotspots such as Sydney, where demand from investors is particularly strong. Therefore, if you're looking to become a homeowner, striking now before affordability declines further due to investor activity makes the most sense.
Utilising the services of a buyers agent in Sydney will help you streamline the process. A buyers advocate will not only help you locate property to suit your needs, they will work tirelessly on your behalf and assist with everything from providing local real estate data to negotiating a purchase.