Recent forecasts indicate a potential interest rate cut in September 2024, with a possibility of further reductions in November 2024.
What’s happening in the market now?
It’s evident that the property market is under pressure. There is a sustained increase in demand for rental property due to the high interest rate and affordability issues in servicing mortgage bond debt. There is also a notable increase in high-end properties, which underscores the pressure of the high interest rate and ability to meet bond commitments. We are seeing longer listing times, with the properties staying on the market for an average of three months.
With the increase in property hitting the market, it is essential to work with an agent who understands your property goals and to obtain a mortgage bond pre-qualification. You’ll be prepared for when that ideal property becomes available.
Crowdfunding is a great way for you to start investing in real estate without needing to spend a substantial amount of money. You can co-own property with family and friends where there is shared investment with a lower risk. Consider working with a professional who can assist in setting ground rules to protect each party.
Servicing a mortgage bond is often out of reach for first time homeowners when the interest rate is high. Rental properties benefit from the demand for this reason. It is important to ensure that property maintenance is prioritised and quality tenants are sought out. This preserve’s the rental asset value and minimises risk.
Now is the time to work with real estate agents to leverage their expertise and market insights to position yourself to take advantage of an uptick in the market.