Buy Now Or Wait in This Property Market?

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Buy now or wait? That is the question that Chan & Naylor Finance hears regularly from clients who read that the property market has peaked (and could even fall).

Right now, auction clearance rates are around 65-75 per cent.  Given that there is now a large supply of properties on the market for sale, these figures indicate that there is still strength in the market.

And, given that some analysts are predicting prices to fall, these figures look pretty good – although a long way from the peaks of almost 80-90 per cent earlier this year.

Certainly it’s hard to see the market achieving the rates of growth it has for the past years (and already the mining states are pretty pessimistic). But owner-occupied lending rose to $932bn in September, more than offsetting any slowdown in investor lending.

So what do buyers do: take advantage of the fact that there is now less competition; or wait to see if prices fall?

Australia’s property market is now worth $5.76 trillion. It comprises 9.53m dwellings at an average price of $604,700. According to the Australian Bureau of Statistics, in the last financial year, every capital city increased in value (except Perth and Darwin). In a market this size there are bound to be hotspots and areas of decline – only a fool would assume the only way is up (or the only way is down).

But, if you do your research, you can identify locations and properties with sound fundamentals whose value will at least hold and probably go up.

And, given that the market is less frenzied than before, home buyers increasingly have the luxury of time to do their due diligence and negotiate a fair price.

Good mortgage brokers have access to lots of data that can help you research the value of a property. Many also have relationships with buyer’s agents who can negotiate on your behalf.

So what are you waiting for?

Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.

 
 
 
 

Warning

The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this website, lnfocus, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

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