Is now the time to buy?

According to our friends at LGEN it is!

Here is the information from Ben at LGEN supporting the rationale behind calling now as the right time to buy;

 

Hi Greg

If you are like me, I’ve had plenty of leads that came in early in the new year!

But due to ongoing market uncertainty, there has been plenty of people looking to buy, but just waiting for the “right moment”!

Well… I’m here to tell you the right moment is now!

it is time to revisit those “fence-sitters” to tell them post-election… the property market is starting to look a whole lot better!

What is making it better?

It can be summed up in three points:

Demand: Demand for housing will continue to be buoyant in the medium to long term. The most recent budget papers in May, project Australia to continue to see ~450,000 new Australians over the coming 4-5 years, making that 40m person by 2055 target possible sooner rather than later!

Source: www.aph.gov.au

Supply: Because of the recent restrictive lending practices and falling prices, especially in Sydney & Melbourne, future supply has well and truly been curtailed where population growth and new supply will take a very short space of time to re-balance the market place

Source: petewargentblogspot.com.au

Credit & Lending: the most recent news of APRA’s easing of their required benchmark assessment rate for borrowers will be an absolute shot in the arm to the market! See Cameron Kusher’s (Corelogic) payoff diagram to show the large difference it makes at current market rates!

Couple this with:

  • Expected interest rate cuts by 50bps in the next 6 months (See projected yield curve below), and
  • the upcoming LMI assistance policy for first time buyers with 5% deposit

This, as well as no projected change in policy, will all no doubt send a positive message to the market, and see prices consolidate in the major capital cities, with those in tight supply likely to see price rises!

I welcome you to use this data as a reason to call your “fence-sitters” to spark some action and get them back in the market before the rush!

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