If you’re waiting for prices to drop before buying your first home or next investment, I’m sorry to tell you, but you’ll always be waiting.
And look this isn’t a bad thing, in fact it can be both good and bad.
On the good side, this means that growth is happening at such a rate that the sooner you enter the market the better and that it’s the perfect storm for investors when it comes to capital growth and rental yield.
On the bad side, it means that a lot of people are priced out of certain areas, when it comes to their borrowing capacity and/or deposit amount.
In fact, Byron Bay resident, Jason Olderoy has found himself in this exact position, unable to buy in his area, even though he has a $140,000 cash deposit just waiting to be used. But due to the extreme popularity of the area especially in recent years thanks to the exposure from Hollywood Megastar and fellow Byron Bay Resident, Chris Hemsworth, it’s driven prices beyond his $400,000 borrowing capacity.
He explained that as a business owner who works from home, he needs a property with substantial space for an office and clinic space so they’re looking for a 3-to-4-bedroom home, but they’re priced from $800,000 to $1.5mill which is more than double what they can afford.
Olderoy then said “The rises in house prices, we really didn’t expect it to go where it went. We were holding back and waiting for it to drop as it already seemed too high and we found ourselves in a situation where we’re priced out of the market.”
“How can we get a home for our future and how can we get something stable? The difficulty now is rent prices have gone u as well, so we’re in a situation where we are having trouble paying the rent and at the same time looking at getting into a house in the future.”
Now Byron Bay was the hottest market in 2020, with an explosive 40% growth rate, so not every area is the same, however, it serves as a warning to anyone “waiting” for prices to drop.
The honest truth is prices won’t be dropping anytime in the near future. With the need for homes, several government initiatives, and a record low interest rate set to stay at 0.10% till at least 2024, those in the know, know that right now is the best time to buy.
So, if you’re sitting and waiting to buy, get in touch with us and let us help you build the best strategy for you and your future because you don’t want to be priced out of your area in the future as well.
Our goal is to help as many people as possible, create a future of financial freedom for themselves and their loved ones so get in contact on 1300 522 562 or email team@jrprosperity.com.au
When considering an investment property with positive cashflow, it is important to make sure it is suitable to your specific financial goals and objectives. Remember to do you due diligence and is you need advice, JR Prosperity Partners can help you decide if this is the best strategy for you.
