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Why now is the perfect time to buy your first home



Why now is the perfect time to buy your first home
The conditions are ripe for first home buyers.

As you turn that key, or these days press the button, the first emotion is generally outright fear. I know that was my experience.

It is this type of fear that I often hear as a reason why people don’t buy property. But even if prices are falling right now, that’s no reason to be fearful.


The first thing that you need to understand when it comes to buying property is that you are not in the game of picking the top or the bottom of a market.

There are plenty of gurus and experts who have tried and failed with picking markets, so you don’t need to add yourself to the list.

Since property is a long-term investment, picking the right time is not as important as you might think.

Another money myth that I hear regularly is that all the good properties are gone.

This is just not the case. At any time, there are good investment-grade properties to buy.

Which leads us to the strategy: It’s always a good time to buy property.


So, why do I think now is a good time to buy property? Let’s look at some of the things happening here and overseas that support the strategy.

Before I do, it is important to understand the market conditions.

The good news for those worried about buying at the peak, is that the last cycle peak was in 2017. Since then, all the capital cities have seen declines in value.

But wait, what? Didn’t you say now was a good time to buy.

Despite the falling prices, the thing I know is that property is a long-term game, and over time, prices will rise.

And right now, there are a number of factors that when considered together, will lead to higher prices over the longer term.

Here are a few for you to consider.

First, population growth. Data suggests the Australian population is forecast to grow by between 3 million and 4 million people over the next 10 years. That is the equivalent of Canberra every year for 10 years.

The significant portion of this growth is coming from immigration, especially from China.
More people means more demand for housing.

Second is the low-interest-rate environment. With inflation being under control or within government expectations, a low-interest-rate environment is likely to remain for a little longer yet.

Recent lending restrictions imposed by the Australian Prudential Regulation Authority that have been affecting investors have been relaxed, to an extent, which will bring investors back to the market.

Low interest rates mean more affordability, which leads to more demand.

Third, global markets are experiencing growth. As markets grow there is more wealth created, which means more people are able to invest.

And as you now know, more people investing means more demand, which, yep, means rising prices.

Finally, the changing nature of the family demographic is resulting in more demand.

There are now more single-person homes. People are marrying later and having kids later, which results in more demand for homes, especially units close to capital cities.


So, knowing these factors, it is a highly reasonable expectation that prices are going to rise over the longer term.

With a couple of cautionary considerations.

As with any significant purchase, you need to ensure that you only spend what you can afford.

It is important to consider what your repayments are going to be at current interest rates and allow some buffer for the likely event that rates will rise over the time that you are going to hold your property.

Everyone has heard property investing is all about location, location, location.

This means sticking to major capital cities where the demand factors are going to be strongest, and only buy properties that match these factors.

It’s not as important that you love the property when you are an investor, but that it is attractive to a renter, which means being close to the city and amenities.

With all this information in hand, you are now able to overcome that fear that may have held you back before, and get in the game.

It’s like the feeling you had after your first drive. With just a little bit of experience and information, you now know that driving is something you can do. Buying property is the same. Get in the market and start building your financial future.

Andrew Woodward is a accredited money coach based in Sydney who teaches people to take control of their money and invest for their future, simply and efficiently. Sign up for his free weekly money tips at his


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House prices: Australia’s property market facing longest downturn in decades



australian property

Aussie homeowners could find the value of their properties slashed by as much as 15 per cent as our housing slump deepens. It seems there’s no relief in sight for Australian property owners as experts warn house prices will continue to tumble well into next year.

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Experts warn of ‘debt bomb’ as housing downturn worsens



debt bomb
AUSTRALIA is facing a “debt crisis” — and the property market and our entire economy are at risk as a result.

That’s according to the sobering 60 Minutes segment Bricks and Slaughter which aired last night, revealing the country’s property downturn was just the tip of the iceberg.

According to reporter Tom Steinfort, the current slump is actually “more like falling off a cliff”, with a number of real estate and finance experts claiming houses could plummet in value by up to 40 per cent in the next 12 months.

If that happens, it would also cause an economic “catastrophe”.

Mr Steinfort spoke with data scientist Martin North from Digital Finance Analytics, who said Australia was uniquely vulnerable when it came to an economic crash tied to a property downturn.

“At the worst end of the spectrum, if everything turns against us we could see property prices 40-45 per cent down from their peaks, which is a huge deal,” he said.

“There’s $1.7 trillion held by the banks in mortgages for owner-occupies and investors. And that’s about 65 per cent of their total lending.

“That’s higher than any other country in the Western world by a long way.

“There’s probably no country in the world more susceptible to the ramifications of a housing crash than Australia. We are uniquely exposed at the moment.”

Mr North said Australia was now in the same position as the US was back in 2006 and 2007 — a position which triggered an economic collapse.

“As a society, and as a government, and as a regulatory system, we’re all banking on the home price engine that just goes on giving and giving and giving. It’s not going to,” he said.

“We’ve got a debt bomb, we’ve got a debt crisis and at some point it’s going to explode in our face.”

debt bomb

Melbourne homeowner Mohammed Souid told 60 Minutes his family was experiencing mortgage stress. Picture: 60 MinutesSource:Supplied

It’s a sentiment shared by Laing and Simmons real estate agent Peter Younan, who said the median house price in his patch in Granville in Sydney’s west had dropped from $1.2 million to $1 million in just one year — a shocking $200,000 plummet.

He said foreclosures had also risen by 600 per cent in the region.

“The mortgage stress is definitely being felt especially in this area,” he said.

60 Minutes also spoke with several Aussie homeowners who gave harrowing details of the stress they faced trying to pay off their mortgages, including having their power turned off and being “hounded’ by their banks.

What does a million dollars buy in Aussie capital cities?

debt bomb

Market analyst Louis Christopher of SQM Research said the market had been “clearly overvalued”, labelling the downturn as the “correction we had to have” — at least in Sydney and Melbourne.

“On our numbers, Sydney was effectively over 40 per cent overvalued. And Melbourne was overvalued by about the same amount,” he said.

But property investor Bushy Martin said the blame lay squarely at the feet of buyers who “mortgaged themselves up to their eyeballs” in a bid to snap up dream homes before being able to afford them.

debt bomb

Property investor Bushy Martin says homeowners are to blame for the crisis. Picture: 60 MinutesSource:Supplied

However, the segment has also sparked backlash online, with some claiming the situation had been exaggerated.

One Reddit user branded the report as an example of “alarmist journalism and scare tactics”, while another said it was “dramatic and cringe-worthy”.

Others also criticised the segment for making it seem like all homeowners would be affected, when the downturn was actually mainly focused in the NSW and Victorian capitals.

And some said it was unfair to blame the banks for the situation, and that homeowners needed to take responsibility for their own decisions.

That was in response to comments made by one homeowner on the program, who said the bank had “suddenly switched the mortgage to interest and principal”, raising his repayments by 57 per cent.

“The interest only part annoyed me the most. The bank didn’t ‘suddenly change’ your repayment from (interest only) to (Principal and interest) your IO term expired. You a) knew this would happen and b) assumed the bank would renew it when it expired. I hope this speculator gets burnt first,” one Reddit user said.

Related articles: Experts warn of ‘debt bomb’ as housing downturn worsens


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This suburb has been identified as one of Australia’s most consistent property markets and it’s on the Gold Coast



gold coast houses

ONE of Australia’s most consistent property markets is on the Gold Coast and is primed for future price growth.

Clear Island, where this home at 8 Istana View is listed for sale is among Australia’s most consistent property markets.

ONE of Australia’s most consistent property markets is on the Gold Coast and is primed for future price growth.

Clear Island Waters has been identified in the latest Hotspotting Price Predictor Report in the top four most consistent Australian suburbs for property sales.

According to Terry Ryder of Hotspotting the suburb was one which recorded a consistent level of sales and demand quarter after quarter.

It has recorded about 40 property sales every quarter for the past two years, despite its high median house price of $1,150,000.

It’s median house price increased by 16 per cent in the past 12 months.

Mr Ryder said consistent sales patterns were generally a precursor to price growth and that suburbs such as Clear Island Waters “represented safety for investors’’.

“They are usually not boom markets, but have the valuable quality of solidity. And markets with this high level of even performance often have good price growth over time,’’ he said.

Mr Ryder said it was an exampled that consistent markets could produce good price growth in the short-term and steady long-term capital growth rates.

Real Estate Institute of Queensland Zone Chair Andrew Henderson predicts a lift in buyer activity on the Gold Coast during spring.

The Gold Coast has grown up

gold coast houses

“Historically as the weather warms up moving into springtime we also see an increase in buyer market activity and there is a rise in the number of properties being listed for sale with planned spring auction dates,’’ he said.

“We are anticipating continuing buyer activity with the strong migration numbers to the Gold Coast form interstate and also with the number of auctions being conducted increasing each week.’’

Mr Henderson said units close to the beach were in demand from owner occupiers, property investors and also those looking for a beachside “weekender”.


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