How to Succeed in a Falling Market

Author – Graeme Salt

Sydney recorded its fourth consecutive quarter of falling property prices (-1.2 per cent) while Melbourne was down for the second consecutive quarter (-0.8 per cent).

Believe it or not, investors can still make money in the property – if they make wise choices.

Australia is one of the largest countries in the World; and to talk about the property market misses that there are multiple different economies and markets across the country.  Sure, Melbourne and Sydney have peaked.  Brisbane and Hobart retain a glow and there are signs of life in Perth.

But, even in the two biggest capital cities, buying opportunities remain.  Both the Vic and NSW governments are embarking on major infrastructure splurges, which in key locations should see a rise in property values.

The proposed $50bn suburban rail loop in Melbourne would see 12 new underground rail stops.  While the Sydney metro will ultimately have 31 stations.  Such new infrastructure will see a significant rise in property values.  One piece of research calculated that houses within 400m of a train stations experienced a 4.5 per cent increase in value

And, even if you are not looking to buy right now, there are ways you can set yourself up for success.  From this month, the country’s largest banks will begin sharing customer repayment histories with other lenders.  Develop good habits for repaying credit cards pronto and you may find the banks will lend you more and at a sharper rate when you come to apply for a mortgage.

The lending World is changing by the minute.  One bank may raise rates while another reduces them.  Many lenders no longer offer loans for SMSFs while others are keenly expanding into that sector.

Choosing the right lender and the right loan is crucial to your success.  Do your research now, talk to your broker.  It will set you up for success in the future.

For a no-obligations consultation on your home loan needs, please contact Graeme on 1300 30 67 67