Have you been tracking the value of your property recently? You ought to have seen it increasing over the last 18 months. If you’re not sure what your property is currently valued at, then get in touch and we’ll provide you with a desktop valuation within a couple of minutes!
We can also prepare the latest RP Data (rich property data) reports which will not only clarify how much your property is now worth, but it’ll also tell you about recent sale prices for similar properties in your area, details of nearby properties on the market and general info on how your suburb is performing.
In Australia, we’ve seen a significant growth in property prices across most areas, leaving many to suggest that the property market is peaking. Even some markets such as city areas which have been dormant for period of time have been increasing. And the growth trend for regional and coastal markets is still buoyant. However, with recent interest rate raises and change of Government in Australia the market is changing. We’ll explain how the changing market might affect you in this post.
Our property investment experts live and breathe real estate and know exactly what’s happening in the property investment market in real time. Our mission is to empower you to make solid investment decisions.
To find out more book a free discovery session with Capital Properties today.
On the go? Here’s 30 seconds of take outs:
- Capital Properties can provide you with a RP Data report to clarify your property value & compare properties in your area.
- The current sellers’ market is moving towards a buyers & investors market.
- Right now is the perfect time to secure an equity loan.
- Inflation is making everything more expensive.
- Many banks have increased interest rates by 1 percentage point & similar rate rises are likely in the coming months.
- We recommend focusing investment on cash flow properties.
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Sellers or Buyers’ Market?
Sellers, aka ‘vendors’ have benefited greatly in recent times, allowing us to unapologetically call the last couple of years a sellers’ market. Vendors expectations were quite high, and they hadn’t been disappointed with lots of buyers competing for a limited amount of stock on the market. This was a strong catalyst for increasing property values and the government building stimulus packages have also helped significantly.
However, the property clock is changing! The current sellers’ market is moving towards a buyers and investors market. This could be a fantastic opportunity for you to increase your equity loans or pull that equity and make it work for you.
Secure Equity Loans Now!
In this current cycle, there’s never been a better time to secure your equity loan. With the property market peaking due to a lot of good comparable house sales, we’ll see valuations stacking up. So now is the perfect time to use the equity in your home as collateral to set up your equity loans.
The Capital Properties team can introduce you to a switched-on mortgage broker that can help you with this process.
If you’d like to do a little more research before you speak to someone, then the Capital Properties Australian Property Market Report gives you a snapshot what’s happening in the current market right now.
What’s happening with inflation?
It’s not just the property market that’s peaking, you’ve probably already noticed that the cost of just about everything is going up at the moment. This phenomenon is called inflation. It’s the first time many young people in Australia are experiencing the effects of inflation.
And the reason it’s happening now is to make up for the increased Government spending that was necessary to maintain the Australian economy through the last couple of trying years.
“Inflation in Australia has increased significantly. While inflation is lower than in most other advanced economies, it is higher than earlier expected. Global factors, including COVID-related disruptions to supply chains and the war in Ukraine, account for much of this increase in inflation” – Statement by Philip Lowe, Governor: Monetary Policy Decision 7 June 2022 from the Reserve Bank of Australia (RBA).
Interest Rates Normalising
We’re sure this won’t be the first time you’ve heard that interest rates have also been going up. The last two RBA announcements have increased the cash rate by 75 basis points.
Banks and lenders do operate independently to the RBA’s announcements, however with this significant 75 basis point movement over last couple of months, many banks have increased interest rates by one percentage point. This could be a cause of concern for those investors who are overleveraged.
Capital Properties strategy with investments over the next 18 to 24 months is to investiagate cash flow properties to oppose any interest rate rises as the markets settle.
It’s easy to forget that the interest rates were at emergency levels and the lowest levels in recent history during the last 18 months. So, this raise which sees interest rates normalising was expected to happen sooner rather than later.
Typically, the interest rates tend to hover around 5%, so you can anticipate similar interest rate rises in the coming months as the interest rates are normalised. We’ve expanded on this subject in the blog: “Cash flow property Double Your Income – How to counter interest rate raises”.
Capital Properties’ mission is to help you turn your Defence income into financial freedom. As Australia’s leading Defence Force housing and property investment specialists, we can help you get on top of your financial literacy and make sense of the property investment market, inflation and interest rates.
Book a free Discovery Session today and let’s get started.
