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Move on housing now before market recovers, investors urged

Move on housing now before market recovers, investors urged
Date of Publication: Monday, 20 May 2013 14:31

Prospective homebuyers and property investors should act swiftly before a more sustained recovery in the market begins later this year, a leading entrepreneur has said.

 

Speaking to over 3,000 delegates at the Australian Real Estate Conference, home loan tycoon John Symond said that historically low interest rates had created the optimum condition for a recovery in the market.

 

"You can't get a much better time than now," he said. "We have seen the housing market bottom, while there is evidence right around Australia that prices are increasing."

 

Investors should consider acting quickly, he added, as only a surge of confidence was needed to return the market to its former glory, and that is likely to come after the federal election takes place in September.

 

"After the election, most Australians will feel they have a government that can make decisions in their own right and that will boost confidence," he said.

 

He said that first-time homebuyers needed to act on the market indicators, such as record low interest rates and affordability, which is "the best it’s been for many, many years."

 

The number of suburbs where it was more affordable to buy a home under $500,000 dollars than rent at the same value had leapt by around 60% over the last two years, he said.

 

Rising Rents

RP Data released last week suggested that falling vacancies had pushed rental costs up in major cities, with the median weekly rental price of home in Sydney costing $470.

 

The President of the Real Estate Institute of New South Wales, Christian Payne, said that the government needed to go further, following the Reserve Bank’s decision to reduce interest rates to a record low in May (on which, read more).

 

"The decision by the RBA to cut interest rates must be supported by appropriate incentives to invest in the property market, including cuts to transfer stamp duty rates in the state budget on 18 June 2013."

 

James Booker
Which4U

 

If you enjoyed this article, check out the latest articles on our Finance Blog.

Monday, 20 May 2013 14:31
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