Greetings! It is now winter here in Melbourne. But the demand for outer Melbourne house and land properties has anything but abated.
You and I keep hearing stories about Australia being the most expensive land in the World. Absolute poppy-c**k! Have these sprukers never travelled? New York, London, Paris, Tokyo, Shanghai, Hong Kong, and on and on the list goes. There are few places in the World that one can buy a 438m2 land lot with a fine 4 x 2 x 2 house with study for under $400,000. Don’t believe me; check it out.
The banks are at it again, with changes to lending rules for both local and foreign buyers; especially foreign buyers. And at the same time the RBA has held interest rates steady again for this month which will have an effect on the property market over these next months.
And I heard on the grapevine today that 60 developers have collectively written directly to the Federal Government explaining that unless the rules are changed back then we can expect a significant negative economic impact; especially on employment. These precipitous actions by the banks will increase vacancies and developers will left with deposits paid by certain investors who will forego their initial deposits rather than trying to put more cash into their borrowing mix. That means that apartments will be resold at a lesser price by the purchaser or developer.
So why should you be buying a house and land property immediately???
Most finance through the near future will restricted to house and land acquisitions; and not apartments; therefore we can expect an increased demand for House and land products that are around 25 to 30 kms from the city. We can reasonably expect to see prices surge with increased demand..MAKES SENSE.
At the moment I believe that outer Melbourne properties are affordable, with interest rates being the lowest in our times; but over-sighting all of these reasons is the fact that you need to ensure you have sufficient investment property to achieve your long term goals.
Strong population growth coupled with falling interest rates are providing us an excellent opportunity.
For further information on this subject call or email me.
Till Next Time,