The Australian Housing Market
Melbourne and Sydney housing markets are going through a bit of a downturn and auction clearance rates have dropped to under 43% in both markets. But why is the market going down, and what should you do about it? Rex explains in the video below.
Australian Housing Market – what to do next.
Melbourne and Sydney housing markets are going through a bit of a downturn and auction clearance rates have dropped to under 43% in both markets. But why is the market going down, and what should you do?Posted by Claringbold Financial Services on Thursday, November 22, 2018
So what should you do?
There’s a federal election next year and negative gearing is on the agenda and may be removed, so there’s a probability that property prices will continue to fall in 2019. First home buyers have come back into the market, and it’s a good time to buy.
If you’re planning to sell and buy in the same market and for a similar value, you’ll likely save on stamp duty and real estate fees because of lower values. If you’re looking to sell an investment property, make sure you do your numbers. Selling now may still be a good option. But if you bought in the last couple of years, you may end up making a loss. Investors need to do their homework, negotiate hard and buy with the expectation that negative gearing may be gone.
And finally, prepare a budget, know how much you can spend, set your target price, and don’t go over! It sounds simple, and it is.
If you have any questions, please feel free to call us on 1300 300 844 to chat with an adviser.
This advice is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice.