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Don't Wait Too Long...

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Don't Wait Too Long...


Whether you are buying or selling don't wait too long. Forces are at work in this market that should lead to a quick recovery in buyer interest and, if stock levels remain tight to increased prices. This is not Sydney or Melbourne, there have been no massive price drops here.
 

Median Property Price Changes

 

 

 

Houses

Palm Beach

Elanora

Currumbin Waters      

Burleigh Waters

Varsity Lakes

Gold Coast

2019

7.01%

2.99%

0.70%

1.62%

-0.17%

0.64%

2018

7.09%

4.69%

4.65%

2.64%

-0.83%

2.62%

2017

6.77%

9.40%

10.26%

4.20%

7.24%

7.02%

Units

 

 

 

 

 

 

2019

-0.71%

3.03%

-1.23%

8.43%

1.10%

0.74%

2018

7.71%

7.85%

12.02%

-1.89%

0.85%

0%

2017

7.24%

0%

4.91%

12.47%

0.74%

5.19%

 
In my experience people who grasp opportunities early always do better than people who wait for the word “boom” to go up in flashing lights before they act. The people who act early are the ones who create the “boom” if there is to be one.
 
If you're wondering about selling now or waiting until the market rises keep this in mind. If you are selling a $600,000 property to buy an $800,000 property and yours goes up by 10% so will your target property and you will probably need another $20,000 because you waited.
 
Four things have happened that should make a difference in the short term.
 
First, the income tax package has been passed providing immediate tax relief to low and medium income earners.
 
Second, the RBA has reduce the cash rate 50 basis points in the past two months. Money is cheap.
 
Third, restrictions on lending imposed by the regulator have been lowered.
 
Borrowers will be able to access mortgages 14% larger in a move experts say will reignite a housing boom. A USB economist said households on an income of $200,000 year could boost their loans by an extra $150,000 if they going to a lender offering a leading market interest rate.
 
For households on a combined income of $125,000 a year the maximum loan size would jumped by $90,000 to $765,000 while the typical household with a combined income of $85,000 would be able to secure an extra $30,000 on their loans. This all comes about because stress testing has been dropped to 2.5% above the bank's standard variable rates.
 
If you use a Broker you should be able to locate the lowest variable interest rate to leverage off.
 
And finally, the re-election of the Coalition government means the threat of higher taxes on capital, both CGT and Negative Gearing, has been removed.
 
By historical standards, unemployment is relatively low – edging above 5% – and the ratio of employment to the working age population is close to a historic high.
 
Already prices are firming in the lower end of the market, numbers through open houses have also shown a strong rise and prices are improving.
 
You can find more information on each suburb by downloading an up to date Suburb Report here.
 

 

by David Hamilton


Don't Wait Too Long...
palmbeachfn.com.au July 2019
First National Palm Beach
Cnr of 6th Ave & Cypress Terrace, Palm Beach, QLD 4221

Ph: 07 5559 9600

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