Have you been following the latest on the property market in Australia? If you’re like me, you’re probably feeling a bit overwhelmed by the changes happening in the real estate world.
Investment loans on the slide
According to a government agency, the number of new investment loan commitments has decreased significantly over the past year, with a significant drop in December compared to the previous year. This drop in investment activity is being blamed on the rise in interest rates, making financing options less accessible for potential investors.
But here’s the thing, this decrease in investment activity is also driving up rents. A managing director of a property investment advisory firm says that the rental market is becoming even tougher for renters and the critical undersupply of rental properties needs more investors to help alleviate the situation.
Rent values have risen significantly in the past year, with the annual growth reaching a new high. This is where we come in as young, first or second-time investors. The expert suggests that those with budgets in a certain range are in a prime position to secure properties with potential for growth and solid returns in southeast Queensland, as well as certain locations in two states.
Challenges ahead for Aussie renters
So, if you’re a home-owner looking to invest in the property market, now may be the perfect time for you to take advantage of the current market dynamics. You won’t have to face the same lending challenges that existing investors may be facing and you could potentially secure a property with potential for growth and solid returns.
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In conclusion, the property market in Australia may be going through some changes, but young, savvy millennials, have the opportunity to make the most of it. Let’s not be discouraged by the current market conditions, but rather see it as an opportunity to invest in our future.