To Be or Not To Be……….a Rent-vestor.

It seems it was easier back in the olden days. Remember back when you were a kid? More to the point, remember back when I was a kid, back in the 60s and 70s. You either rented or you bought your own home. It seemed that there were only the privileged few who could...

5 Bedroom Brand New Near Elite Schools and Walk to the CBD

52 2The selling agent has made this property is available for PPBA to buy for you. Elevated position, literately brand new, yet retaining the classy Colonial look is this colossal 5 bedroom residence mere walking distance to CBD and surrounded by a number of the best...

If It Seems Too Good To Be True, It Usually Is!

Often forgotten words, but at the heart of the ‘get rich quick’ schemes is this well-known assertion. When was the last time you saw a ‘wealth coach’ spruiking the benefits of some new real estate wealth scheme? Last time you looked at your email inbox or your...

Post COVID-19 Lending – What to Expect

Have you ever walked into a bank with a mask on? I heard a bloke named Dillinger tried it. Didn’t go well for him! However, with the onset of COVID-19, banks have changed not only the way they interact with their customers, but also the lending process. Furthermore,...

If you’re a buyer, ‘gloomy’ is GREAT!!

How has COVID-19 Been Good for You? The property forecast at the start of Covid-19, back in Feb-Mar was gloomy. If you’re a buyer, ‘gloomy’ is GREAT!! Let’s face it, if you were actually struck down with COVID-19, that’s not good for anyone. There are some people who...

Don’t Worry! You’re Not the Only One.

Is it lack of knowledge, don’t know where to start or just plain fear? We all know that it’s something that we need to be doing, otherwise we wouldn’t be here right now. What is it exactly then that’s holding you up? That’s the very first step you need to take to get...

If Nothing Changes, Nothing Changes!

How many “property experts” do you know? Friends, family and workmates who all know the best property to buy, the best location and the best strategies. There are plenty of them and they are all ready and very willing to give you their advice. Here’s the best way to...

What’s Your Property Negotiation Strategy?

Are you aware of how selling agents tie you to an inflated price for your new property? Negotiating for your new property, be it investment or your own home, isn’t just something that you jump into when you’re suddenly at the negotiation table. Negotiation is a...

Are You Up for the Challenge?

Are you up for the challenge? Are you a “can do” or a “I can’t be bothered” person? What is it that makes us want to get up in the morning? What is it that makes us want to do well at study and our job? What is it that drives us to do better in life? We all know the...

You Could Hire 300 Spartans.

Often the Questions is Asked, "Why Would You Use a Buyers Agent?” When really the question is, “Why would you not use a Buyers Agent?”Think about why people use a real estate agent to sell their property. When a selling agent has a serious buyer in their sights, they... #main-header, #top-header, #main-footer { display: none!important; }

Do you have any idea what is happening with the property market?

If you can find two people who agree on exactly what’s happening, listen to them, then wait a day and ask them again to see what their new position is……. then make your own decision. The fact is that the situation remains fluid. At the start we saw predictions of falls of up to 30%. That turns out to have been a little over the top. Australia’s normally resilient property market came to the fore yet again.

While property in general has remained reasonably stable throughout the COVID experience to date, the Victorian resurgence and the trending rise in cases in NSW, has once again applied pressure to markets of all types, including property.

Personally, my money is on slight falls across the board except in the area of commercial office space, where falls will be more drastic. As iterated by NAB below, the rise and rise of Zoom and other web based communication mediums, along with people and companies realising that working from home can actually work, will likely lead to a higher level of vacant office space, particularly around the CBDs. This situation will create an oversupply of office space. The bright side is that office rents will very likely decrease as a result.

NAB’s chief economist Alan Oster sums the situation up as follows:

“When you look at house prices, our expectation is 10% to 15% down.

And the main reason is the two big drivers. Number one population. I don’t think that you are basically going to open up international migration for at least the next 12 months, so that means population growth halve And the second thing is unemployment. Normally when unemployment goes above 8%, you are in deep trouble.

“And all those things are going to pull the housing market down… [But] the one area I am particularly worried about is commercial property. For me, I think Zoom is permanent in terms of people working from home… The vacancies in some of the [CBD] areas, I think there is already massive oversupply.”

Immigration, which has been one of the main drivers for property growth over the past 10 years, has obviously taken a huge dive. That was actually a no brainer that will possibly affect Sydney more than elsewhere. It will however, affect all the capitals and some regional areas to some extent. I’m betting that the Federal Government will also use this opportunity to make some adjustments to immigration policy for the future. Stay tuned for that one.

The drop in visitor numbers has hit the tourism market in a huge way and adds many to the numbers of unemployed around the country. Queensland, with it’s large international and domestic tourism industry is feeling the effects of not only international borders being shut, but domestic borders as well.

The latest unemployment figures, with Queensland leading at 8.8% probably point more to the fact that the “Sunshine State” is now keeping the sunshine to itself and keeping everyone else in the shade. The ramifications of this on the huge Queensland tourism and related industries are a likely reason for the higher level of unemployment.

If Oster’s summary is to be believed, these figures would seemingly point to Queensland as heading for “deep trouble”. Yet the constant “no new cases” coming from Queensland would point to the situation not panning out as bad as may have been expected.

Regardless of who’s property forecast opinion you follow, the fact remains that property is now more affordable than it has been for some time. It’s a great time to get into property and look to the future.

If you’d like a FREE consultation on what to buy and where to buy it, contact us at Premier Property Buyers Australia.

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