Why 2020 could be the year for you to jump into the property market
2020 could be the year to jump onboard the property bandwagon, or expand your portfolio if you're already on it.
A turnaround in the Australian housing market in the second half of 2019, along with further interest rate cuts on the cards, points to opportunities for buyers and sellers, says DG Institute's Dominique Grubisa.
"This is a fantastic opportunity for new buyers looking to enter the property market, as servicing debts is a lot cheaper," says Grubisa.
However, she says investors should proceed with caution.
"It's concerning the government is needing to lower rates even further. Fiscal policy, tax cuts and interest rate drops have already taken place over the last year, which still hasn't encouraged the population to inject more into the economy."
Owner-occupier home loans surged 10% in November compared to the same time in 2018, setting the stage for a solid year from the property market in 2020.
The value of loans to owner-occupiers (excluding refinance) also rose 1.6% over the month of November and was up 10% year on year; the value of loans to investors lifted 2.2% from October 2019.
Mortgage Choice chief executive Susan Mitchell says the results were in line with expectations.
"The November data reveals a solid gain across investors, owner-occupiers and first-time buyers. The growth in the value and number of housing finance commitments is consistent with the turnaround in the housing market in the second half of 2019," she says.
The rise has been attributed to easing credit, fueling an increase in demand along the eastern seaboard.
"Interestingly, the ABS data reveals there was a decline in the number of loan commitments to first home buyers throughout the month of November, however the value of loans to first home buyers is up 2.1% over the month and almost 20% year on year."