26th March 2019 / Prue Fletcher: Buying Property in 2019

I've been immersing myself in a lot of finance podcasts recently, trying to get a handle on where the market is headed this year. Particularly, I've taken interest in the forecasts of what certain economists, lenders and those in-the-know have to say about the current state of the market, and I've come to the opinion ... it's not all doom and gloom.

There seems to be a crisis of confidence, but don't let that knock you. If you've been trying to get into the property market for years, now is a great time to take the plunge and get yourself off the 'information loop'.

Buyers can often be seen as their own worst enemy, and with the amount of information we all have access to these days, anyone can call themselves an expert. It's for this exact reason that ready-to-go buyers miss out on some incredible opportunities.

Instead, take the leap! Don't sit and wonder if the markets going to correct itself any further. For the irony is that you only know when the market has hit the bottom when it's on it's way back up and soon enough, that's when you see demand start to increase and confidence and prices begin to shift.

Buyers who bought in the peak of 2017 with the intent to hold will be rewarded in the long term. However, if you are purchasing now, it is my opinion that there is some serious money to be made.
Remember, you're buying the 'property', not the 'market' and each should be valued on it's own merits. A stabilising market provides an opportunity like no other, so if you've been missing out on property for some time, you may now find yourself a strong competitor in suburbs you once thought out of reach.

It's also important to look at how each suburb is performing on an individual basis. The overall 'market' does not always apply across the board and you can always find some well-performing pockets outside of the city. While these pockets may not have as much short term capital growth, they will still give you a generous return on investment if buying for the long term. Homes that are on well-sized allotments, positioned on streets in close proximity to transport, schools and local amenities are historically always going to perform well.

And lastly, when considering external factors that may affect your purchase, one thing to remember is that the only constant in life is change, and our government is a perfect example of this.
With the uncertainty surrounding the upcoming election, we are now seeing a Labor government who are looking to abolish negative gearing and our current government doing a back flip around the lending landscape. This will allow brokers to keep their trail commissions beyond July 1, 2020 with a review said to happen in another 3 years. Those who are able to anticipate these changes, seek professional advice to help them navigate, adapt and pivot are the ones who are set to really benefit in this current market.