Australians are going to be on the front foot in 2020 as a power shift from banks to the people will give them the potential to reach their home ownership dream, according to LJ Hooker.
The agency’s 2020 trends white paper revealed the shifts that will benefit those who want to make the jump to the property ladder.
“We’ll see buyers able to negotiate better loan terms coupled with record-low interest rates, the realisation that in a lot of cities it’s cheaper to buy than rent, and a rush to regional areas where they can get more bang for their buck without sacrificing lifestyle,” LJ Hooker’s head of research, Mathew Tiller, said.
“Now is the time for consumers to get their finances in order to get into the property market for the first time, or set themselves up for their future by buying an investment property.”
As a result of record-low interest rates, the softening of mortgage requirements and property prices still below the 2017 peaks, it is more affordable to service a mortgage in many capital cities than pay rent.
“In our most expensive markets, Sydney and Melbourne, making the switch from renting to owning would cost just an extra $127 and $142 per week, respectively. It could be down to a case of fewer smashed avocados on toast, and more nights in, to get a foot in the door,” Mr Tiller said.
“It seems no matter the location, and even if prices go up, 2020 still appears to be the right year to make the leap, with affordability still quite good compared to where it was.”