Buying property is a quintessentially Australian part of life in the land down under. It’s such a popular past-time that around half a million properties are purchased across the country every single year, according to the Reserve Bank of Australia.
In fact, real estate is such a huge part of our economy that entire TV channels, magazines and industries are dedicated to helping us do it the right way.
Whether you’re buying your first home, your Dream Home or a piece of real estate as an investment, there are dozens of different ways to make the most of current market conditions. So what are some of the property trends that are driving the market in 2017?
Apartment oversupply risks
In certain markets across the country, including parts of Brisbane and Melbourne, experts are concerned that too many apartments are being constructed. This can impact the value of these properties, because when there’s too much ‘supply’ and not enough ‘demand’, the market is out of balance.
Property owners and landlords are forced into a position where they have to lower their asking rents or asking prices in order to secure a tenant or a sale; we’re already seeing evidence of this in Brisbane’s inner city markets, where some apartment owners have had to slash their rents over the last 12 months.
When buying real estate off the plan, many property buyers find themselves locked into rigid, inflexible contracts that can be costly to get out of – and in some cases, you may be forced to settle (or purchase) the property.
This can bring about some serious financial consequences, which is why we would advise you to always have your conveyancer or solicitor review your contract prior to signing it. We can give unbiased, objective advice based on our experience, to help you make better informed decisions.
How else can conveyancers help you with your property transaction? Click here to see how Good Conveyancers Use Building And Pest Reports To Save You Money >>
The rise of rent-vesting
Never heard of rent-vesting? In simple terms, it’s the savvy person’s answer to being priced out of the market.
With the way some capital city markets have grown in value in recent years, many would-be property buyers are feeling shut out of the market. This has paved the way for the rise of rent-vestors – that is, people who rent property where they want to live, and buy property where they can afford.
For instance, in Sydney, you might choose to rent a bedroom in a house in Bondi, while you purchase a more affordable investment property in Parramatta. You place a tenant in your investment property to help you pay off the mortgage, while you continue to pay rent to live in the neighbourhood of your choice.
This is a trend that has grown in popularity in the last three years, and looks set to continue throughout 2017.
Buying property can be complicated and at Think Conveyancing we are here to help you navigate the process. Our trained and qualified lawyers are committed to delivering exceptional customer experience and advice, so feel free to contact our friendly team today on 1300 932 738. You can also contact us online here.