If you are a buyer who has recently gone to the bank and you haven’t been able to borrow enough for the home that you want it may be a good idea to have them reassess your borrowing capacity. We understand APRA is about to relax lending requirements in July. Let’s say you are a first home buyer who could only borrow $580,000 but the home you want to buy is $610,000. This home may now be in reach. Speak to your mortgage broker.
More stable times ahead for the property market.
Owners shouldn’t expect prices to bounce back any time soon, but it does seem that fresh optimism in the economy in general may prevent much further significant decline in values in this property cycle .
There are various positives in the market at the moment.
1. Interest rates are set to fall again
2. Lending criteria looks like it is about to ease which will increase borrowing capacity and bring more buyers to the market
3. Investors who want to buy older cheaper properties again will have fresh interest as a result of the negative gearing tax breaks remaining in tact.
4. The proposed capital gains tax changes would have seen a lot of investors desert the property sector altogether and invest elsewhere. Now investors will have some incentive to keep investing in older property.
So whilst the property market is by no means out of the woods, buyers and sellers can now both share a sense of optimism in the coming year.
Elders Real Estate Picton