Are you planning on investing in real estate in 2020? Or maybe you’re thinking of buying a new home? Coming from 2019, economists have already seen a significant change in the property market when compared to a few years ago.
Today’s market and the new year prove that there are definite opportunities to be had if you know what you’re looking for. So, what’s ahead for our property market in 2020, and what should you look out for if you’re planning on investing?
What’s ahead in the property market?
House prices across all Australian cities are expected to grow over 2020–21. The combination of lower interest rates, easing lending serviceability buffers and increased economic growth is expected to make the 2020 property market popular among buyers and investors.
While plenty of opportunities will arise for home buyers, it is still the hardest lending environment the market has seen in 20 years. It isn’t hard to invest in a property, but in today’s market doing so requires a different mindset. Thinking in terms of a growth mindset rather than a minimalist mindset and taking control of your finances will provide a more successful investment and financial life for you and your family.
Despite a tough market in the past, the turn in Australia’s property market in the new year is a remarkable one, with prices considerably stronger than most people expected.
Increasing calls for more stimulus from economists has seen a rise in building infrastructure in the next four years, ultimately driving the marketplace and bringing more investor demand.
Real estate values can also rise significantly as a result of gentrification. Whether you’re a first home buyer or seasoned investor, 2020 provides a booming market nationwide, with long-term capital gains expected in each location.
Property price forecast
Research suggests that overall capital city property values are likely to increase by around 5–7 per cent in 2020, with Melbourne followed by Sydney the areas where properties could easily grow in 10 per cent value over the year.
According to the latest statistics, Melbourne and Sydney will be the top-performing property markets in 2020. The three major eastern capitals are forecast to see price gains in the 5–10 per cent range, with Perth likely to see prices stabilise.
Most of Australia’s capital cities will benefit from the interest rate cuts and loosening of credit restrictions. Continued strong population growth will be another key driver behind the price of property markets’ supply and demand.
The current property market sees home buyers and first home buyers getting a foot on the property ladder by opting for solutions like kit home investments, with established home owners upgrading in this rising market.
Sydney property market forecast
Sydney’s property market is now showing the largest gains around the nation. It’s a great time to take advantage of this new property cycle and look at buying an investment property in Sydney.
The city is currently offering investors the opportunity to buy established apartments for a significant discount than what would have been paid years ago.
Melbourne property market forecast
Melbourne’s house prices turned midway through 2019 and are forecast to continue rising into 2020. But the Melbourne property market is very fragmented. Stronger capital gains have been recorded in the most expensive areas, with properties recording a gain of 11 per cent within the upper quartile of the market.
Despite higher supply levels, the apartment sector remains resilient due to more first home buyers supporting housing demand across the lowest points of the market. Thanks to the First Home Owner initiatives, first home buyers or investors can try their hand at investing in 2020. Eligible first home buyers will be able to lend up to 15 per cent of the purchase price of a property.
Brisbane property market forecast
Most property analysts are very positive about Brisbane’s property market in 2020. Researchers predict Brisbane will see the greatest national gains in house prices, with the median house price predicted to increase by 20 per cent by the year 2022.
House prices should continue rising while the value of apartments will remain flat for some time. With increasing migration rates and healthy levels of housing affordability, the Brisbane housing market is promising for those looking to purchase or invest in 2020.
Regardless of the current housing market, property investment is always a good investment. While any investment poses a degree of risk, property investment is generally low-risk as real estate properties are tangible assets.
Even if the housing market went into recession, it is always bound to bounce back. Real estate demand will always be there as long as people need houses to live. So, for that reason, 2020 provides an open door of opportunity for anyone wanting to break into the housing market and invest in real estate or property.