Written by Emma Allen on December 6th, 2019
2019 Property & the year that’s been
What a turbulent year in Property it has been! We saw the major Australian property markets come to a grinding halt at the beginning of 2019 and some of the key benefits of investing in jeopardy of being abolished. The Royal Commission into banking’s findings added to the pressure of an already subdued market. Confidence was stripped from consumers as property owners watched the values of their homes diminish.
Yet last Christmas, APRA released the cap on Interest Only loans. It was a sign that the restrictions had achieved their purpose, that lending was about to loosen. The Coalition won the Federal election which brought back stability to the policies that investors and many middle income earning Australians rely on for their investing and retirement.
From there we’ve seen the RBA drop interest rates three times to a record low. The property market takes a significant turn as the lending environment becomes more supporting of investing. The market is now in recovery, gaining some of the ground that was lost during the adjustment. Supply of both new and older properties remains a challenge as auction rates increase but volumes down.
What will 2020 bring? It will be interesting to see what measures will be deployed to keep the economy moving. Whilst the capital cities have recovered faster than expected, we anticipate moderate growth over the coming months. We will see the emergence of regional centres like Newcastle and the Sunshine Coast gain the respect they deserve as significant economies. Whilst investors continue to battle with the balance of cash-flow and capital growth.
The property market is definitely heading back in the right direction. Finding those unique opportunities are still the focus for our team.
If you’d like to know more about locations that might work for you, please call Emma on 0405 735 931.