Most people who are currently searching from a home or investment property are reading a lot of negative media and getting extremely nervous about moving forward. I completely understand with scary headlines like:
“Sydney, Melbourne property markets cooling” (source SBS)
“Auction Clearance Rates in Sydney and Melbourne remain below 60%” (source Business Insider)
“Falling Sydney and Melbourne home prices – is this a crash? (source AMP)
Even more alarming is reading article from Doomsayers warning that the property bubble is going to burst. Well I have to say that is not the first time I have heard that in my 20 years’ experience in the property industry and I’m sure it won’t be the last. In fact some very high profile Doomsayers predicted the supposed “Australian Property Bubble” would burst in 2011, 2012 and again in 2014.
Fortunately numerous things need to happen for the Australian property market to collapse and together with the Banks tightening their belts, the fact that 70% of Australia consists of owner occupier properties with half owned outright, unemployment rates would need to drop significantly and there doesn’t appear to be a sudden mass of property all selling at fire sale prices with no one willing to buy them. Honestly, with Australia’s current and predicted future population growth it’s fair to say we are not about to see the Australian property market collapse nor do we exist inside a bubble.
So……..why is NOW the right time to buy?
The fact is Melbourne and Sydney’s clearance rates have fallen to a 6 year low of below 60% (source CoreLogic) and yes prices are off the boil……. so what does this mean for you?
This simply means “Opportunity”
While scared homebuyers and first time investors sit on their hands the seasoned Melbourne Property Investors are snapping up the good properties given NOW is the right time to buy property. For decades we have watched the property cycles go up and down and for you, buying in a slowing market provides fantastic savings and moreover, you can capitalise on the growth when the property market turns and again and is on the rise.
You have the opportunity, to purchase in a market place with precision timing. I find it quite puzzling that most people try to buy property when all the media is hyped and talking about the “Hot Melbourne Property Market” and how unaffordable it is to Australians. Hot markets create fear of loss, buyers purchase with their hearts and not their heads and sadly these homebuyers and first time investors unnecessarily pay inflated prices.
Don’t get me wrong, I’m not saying you should go and buy the next bargain you see as it is imperative you buy the right property in accordance with the demographic and demand type for that area and doing so in the current market sentiment will potentially assist you to underpin your long-term success.