After an uncertain 2020 when it seemed that the universe threw just about everything it had at us we are halfway through 2021.
One of the deflecting and damage control protocols put in place was the Government and Reserve Bank acting quickly with reductions in interest rates and massive stimulus policies. But we are keen to ascertain how Coronavirus (COVID-19) and border closures are going to affect the housing market this year?
And what do we think that the property market will look like for the rest of this year.
The reality of our situation is that Australia’s property market moves in cycles. It goes from peak to trough in a regular pattern. Australia’s largest market Sydney has seen over 80% growth over the past few years. That is a figure not to be sneezed at!
Any dips in values right now are almost predictable although many of the real estate experts are suggesting a further rise.
The share market was insanely volatile last year and depending on global events 2021 could continue to be fairly erratic. Many of us have seen the value of our Super funds nose-dive it is heartening to say that long-term, property still appears to be a safe way to go.
The latest figures state that Brisbane property prices rose 3.6 per cent last year, with small increases in rents for apartments and houses. It looks like Brisbane is playing “catch-up” after years of underperformance compared to Sydney and Melbourne. It seems that a house is no longer on the market for five, six or seven months – some aren’t even getting to the open market. So, what are the trends are where are the best suburbs for buying property now?
The suburbs in Brisbane
There are a number of great Brisbane suburbs to keep an eye during 2021. Speak to us and we will be able to tell you what those suburbs are and how they affect you. A couple of great indicators are new infrastructure going in. So things like new or improved railway stations and general transport network. New or extended schools and childcare centres indicate an anticipated rise in residential properties. New shopping centres make those residential properties more appealing to investors. They also make a great location for growing families to decide to settle.
Stricter lending criteria
The Royal Commission has undoubtedly resulted in closer scrutiny on the banks and their lending practices. This certainly hasn’t stopped them from lending though and they are still handing out home loans.
There are a couple of things that you can do to improve your chances of getting your loan approved in 2021
Have a look at a different bank…
As with all institutions, different lenders have different policies. Some small differences can and do make a massive impact on the amount they are willing to lend you.
Consider a single person on $50,000 per year looking to buy their first home.
It does pay to look around. Compare your options and get the best deal that you can!
Review your current Home Loan to make sure you are getting the best deal
Each interest rate cut can give annual savings of between $1,317 on a loan of $250,000 all the way up to $5,267 in annual savings on a loan of $1,000,000 or more
Each interest rate cut can give annual savings to $1,317 on a loan of $250,000. With a massive saving of up to $5,267 in annual savings on a loan of $1,000,000 or more.
Speak to us and we can recommend a Mortgage Broker who can quickly let you know if it is in your interest to have a look at some other options.
Some things to remember when buying property in Brisbane
When you’re buying in Brisbane most people know to check if the property has flooded. It is also worth getting an RP Data valuation to make sure you’re paying the right price. You should also check out to make sure your prospective new home is not on a heavily used flight path.
The Brisbane Airport Corporation (BAC) has updated its guide to Current and Future Flight Paths. It is well worth investigating not only current paths but also future plans Being directly under a flight path is not a great place to be.
Overall the Brisbane property market is looking steady for 2021. We’re looking forward to helping you sell your property for the very best price that you can and helping you find your dream home. For more information on our services you can check out some of our other blogs and take a look at the website!