Who remembers last years dire forecasts of major house price falls?
You do? Well so do we, and guess what happened? It never eventuated.
Why?
It’s a combination of income support payments, and mortgage repayment holidays that really helped carry this housing market. Fast forward to today and with an improving jobs market, ultra-low interest rates, government incentives and buyer’s FOMO (the fear of missing out), all these factors have supercharged the rapid growth we’re seeing today.
Sydney prices have soared to an incredible $1,309,195 increasing by over $100,000 in the first 3 months of 2021. The fastest quarterly gain in over 30 years.
This means the median house price has jumped 8.5 per cent in the first quarter of 2021, according to the Domain House Price Report, released on Thursday 29 April 2021. The fastest growth since Domain records began in 1993.
It’s easy to forget that we’ve had a recession and some people had trouble keeping up with repayments, but thanks to several initiatives, the majority of jobs were protected, and the repayment holidays ensured there weren’t huge spikes of defaults.
With the ongoing lack of stock, buyer demand and those ultra-low interest rates, this has continued to fuel this rare rate of growth.
All these factors matter, because looking forward, we’re now in the second quarter and as the economy becomes stronger, as people return to work and as life returns back to normal, you can expect this growth to continue for some time though it’s momentum may slow down slightly.
This is great news for new and seasoned investors as an excellent opportunity to take advantage of this rising market.
We here at JR Prosperity Partners have a number of developments based in Sydney, from $400,000 that can help you enter the market. With capital growth, low interest rates and the rising market, right now is the best time to start investing!
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 your due diligence and if you need advice, JR Prosperity Partners can help you decide if this is the best strategy for you. Contact us today on 1300 522 562 or email: team@jrprosperity.com.au .
