As Australia sits back and watches the political and economic outcomes of the Australian Federal Government election, we believe we need to focus on the facts that makes this a great time for young investors to get into the property market.
- Queensland’s First Home Owners’ Grant increased to $20,000
Effective 1 July 2016, the $20,000 First Home Owner’s Grant will be available for 12 months. This means an extra $5,000 for first home buyers purchasing newly constructed property under the value of $750,000. It is great that the government is doing whatever they can to help first time buyers get into the market sooner.
- Australian big 4 banks restrict lending to foreign buyers
It was announced last week that NAB is the final big 4 bank that has stopped lending to buyers solely relying on foreign income to purchase property. Instead, bank policy is currently more favourable to local investors, increasing the loan-to-value ratio to 90%, an increase from 80%. This means locals can lend more from the banks than before. As foreign lending dries up, banks will have better offers to attract more local buyers.
- Sentiments about apartments
Media reports and industry commentary has alluded to the risk of ‘oversupply’ in the Brisbane inner city apartment market as there are more cranes up in the air than we have ever seen in Brisbane before. Naturally, many investors have tread carefully when considering an apartment to purchase. This is where the opportunity is because there are less investors in the market to compete with and developers are as motivated than ever to get their projects out of the ground. The state of the market right now means there are great opportunities available for you to get a good deal.
- Interests rates remain low
The Reserve Bank of Australia have just announced today in their July meeting that the cash rate will remain at 1.75 percent. Australia is faced with a slow down in growth in the global economy, a steep decline in business investments and low inflation. Low interest rates has significantly boosted domestic demand and has allowed for everyday Australians to be able to afford to buy a property.
Regardless of the outcome of the Federal election, if you have the means of purchasing a property, now is the time to do so. Contact us to discuss your needs: email@example.com