The Good, the Bad and the Ugly in Australian Real Estate Now
The Good
If you have the extra money to invest, now is a great time to scout for some great properties at bargain prices. Houses are taking longer to sell. Thus, if you’re a buyer you have the upper hand to negotiate a good price. More vendors are not only realistic about their prices but they are more flexible as well during negotiations. In the long-term, if you chose a good investment property there is a good potential for capital growth.
Meanwhile, the increase in rental yields is making property investment a popular investment choice as well. To add, there are more choices now if you’re after positive cash flow properties.
The Bad
Mortgagee sales are increasing. More people are facing housing stress. There are even reports of “bully-boy tactics” being used by some banks and lenders to scare homeowners who are in default with their loan payments.
The Ugly
More people are struggling to make ends meets. The increase in interest rate, petrol, food prices and rent are taking its toll on consumers and businesses alike.
It will be harder to borrow money. According to this news report, the days of easy credit are gone. Housing affordability is at its record lows.
Having mentioned the good, the bad and the ugly; it pays to remember that real estate is a cycle. If you don’t have the money to buy yet, now is a good time to learn how to budget and save. Meanwhile, if you’re one of the lucky ones who are financially in a position to buy, then now is the time to ride the real estate roller coaster. As most real estate investment advocates would say, the best capital gains are achieved when you buy low and sell high.