Australia’s property market is definitely heating up after several years of uncertainty, however is it too early to state that a residential investment bubble is forming?
The latest housing data released last week contains evidence that investors are the driving force behind the increase in residential housing prices in most Australian capital cities. The Australian Bureau of Statistics released its latest preliminary price index for established houses in August, showing the weighted average housing price for the eight capitals rose 2.4 per cent in the June quarter.
The biggest factor is the Reserve Bank of Australia’s series of cuts to the official interest rate during the past 18 months. The RBA’s official cash rate is 2.5 per cent, representing a cumulative 200-basis point reduction in rates since the start of last year.
Buyers are returning in droves: owner-occupiers and particularly investors, including an increasing number operating self-managed super funds keen to diversify into direct property.
Some analysts are calling for Australian authorities to follow New Zealand’s lead and impose strict limits on low-deposit home loans to take some heat out of our rising home prices.
The Reserve Bank of New Zealand has moved to pre-emptively spike a developing housing bubble in Auckland and Christchurch. However rather than use the conventional method of raising interest rates, it is instead putting limits on the amount of low-deposit loans banks can make. While this method may appear a drastic action, it may be the solution to our decreasing housing affordability locally.
“Historically low mortgage rates are now also playing a role in the housing market,” she said.
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Some say that Spring is the best season to sell property. It's when the sun, the flowers and the warmer weather comes out making your home look and feel better than other times of the year. Since Spring is earlier than usual this year so too is an opportunity to beat the rest of your competitions to the market.
Despite the time of year your property will remain unchanged however there are certain features that buyers will be drawn to depending on the weather. With this knowledge you can highlight or improve what buyers are zoning in on.
For homes affected by temperature it's important to ensure that your property provides prospective buyers with comfort from the extremities. People buy with their senses and how your home makes them feel is probably the number one decider once they get into your home. If it's hot outside on inspection day and your home has air-conditioning or fans ensure that they are in good working order. If you don’t, then open windows to generate ventilation and the flow of air throughout the home.
The extra light that chaperones the warmer weather can also be an advantage during Spring. Be sure to clean windows, allowing light to stream in and brighten your interiors. If there is any painting needed on the inside of the property, choose lighter tones which will help to increase the feeling of spaciousness.
It is natural in warmer weather for buyer's thoughts to turn to outdoor living. Many of them will be more interested than usual about the outside areas of your home, including the entertaining area, pool and backyard. Focus on making these areas as attractive as possible. Remove fallen leaves from the pool and paths, keep lawns mowed, trim hedges and pick up any pet 'packages' left behind.
As well as keeping things clean, tidy and in order you might also want to consider highlighting how the areas can be best utilised. The simple act of placing an outdoor family setting in your yard could show buyers how their lives may be enhanced through the purchase of your property.
Spring is a time for rejuvenation and revitalisation and NOW is a fabulous opportunity to show your property to its full capacity. Flowers are blooming early this year, the weather is unusually warm and everything in the garden that looked dull during winter is coming back to life. If you are thinking of selling this Spring then get ready now and get ahead of the rest of your competition. Buyers are in the market NOW.
helps over 55's who are afraid of not having enough money for their retirement. She does this by selling their family home for a premium price using her proven marketing plans. Often her clients end up with more money than they expected allowing them to buy a new car or go on a dream holiday.