How to invest your hard-earned cash in a new property deal
Aussie house prices have hit a record low, as investors and property agents struggle to come up with enough cash to buy a property, according to a new report.
Key points:Property agents have been reporting a decline in new listingsThe ABS report says median prices in Sydney and Melbourne have fallen below $1 millionA survey by the National Property Council found only 15 per cent of investors are confident they’ll be able to get a new home by the end of the yearThe latest figures from the Australian Property Council (APC) show median house prices in the Sydney-Melbourne region have fallen for the first time in more than a decade, with Sydney and the Gold Coast rising to their lowest values in a decade.
Key point:The APC said there were just over 4,000 listings for the average price of a house in the region, compared to just over 3,500 in 2018The survey by NPD showed just over 14 per cent said they were confident they’d be able at the end on their purchase.
That compares to about 12 per cent in the NSW and ACT.
“A number of factors are driving the market decline,” the APC president Peter Geddes said.
The survey showed the average median price in Sydney had fallen to $1.2 million from $1 billion a year earlier.”
Secondly, there is a lack of supply and that has led to higher house prices.”
The survey showed the average median price in Sydney had fallen to $1.2 million from $1 billion a year earlier.
It also found a decline of 7.4 per cent to $4.5 million in Melbourne.
But it said prices had rebounded slightly since October, when the market was down 4 per cent.
“The recent gains in prices are not simply an anomaly,” Mr Gedds said.
He said the APCs survey found that the majority of investors were confident that they’d have enough money to buy their first property by the time they finished their investment.
“We do see an upward trend for both median price and price-to-rent in the first few months of the market,” he said.
However, a survey by real estate agency Knight Frank revealed that just 15 per-cent of investors had confidence they’d make it to the end.
“Many Australians are in a financial position to fund a new start, but they’re not in a position to do so in time for the end,” Mr Knight Frank’s managing director Michael Williams said.
Mr Williams said he was “deeply disappointed” that the survey data showed a loss of confidence in investors’ ability to secure a new deal.
“Investors in Sydney, Melbourne and Brisbane are struggling to make the transition from property to investment,” he told ABC News Breakfast.
“I think it’s time that investors have confidence in their ability to build wealth, to start a family, to live in their own home.”
The new figures come after a survey found just 15.3 per cent were confident of securing a new mortgage.
“If you’re a homeowner looking to invest, you need to be confident that you can access a loan,” Mr Williams said, adding that this meant you need a bank that’s comfortable with you borrowing from the banks.
“You can’t get a loan from the bank, you’ve got to borrow from a credit union.”
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