Looking to buy, sell or lease in 2016? You should read this first.
You don't need an expert to tell you buying a home isn't cheap.
However, when it comes to large financial decisions you should always consider the advice of those familiar with the kind of investment or risk you're wanting to take.
When it comes to buying a home in 2016, we spoke to real estate expert and Founder of Dream Design Property, Zaki Ameer, to get the best inside tips.
Here are his top pieces of advice:
1. Don’t bother buying in Sydney
In 2015, the median house price in Sydney peaked at $1 million. Despite auction clearance rates declining, Sydney’s housing prices (perhaps like their meal prices!) are still the highest in the country. For this reason, Zaki recommends those looking to buy in a city consider Brisbane, where prices have risen steadily in recent months. "Brisbane’s property market is playing catch up to other major cities and is definitely one to keep an eye on as we should continue to see strong and sustained growth," Zaki says.
2. The market will cool - not crash
Australia has experience strong and steady growth over the past few years - quite an unusual occurrence. But to those who believe the market is heading for a sudden crash, Zaki disagrees.
Areas that saw booming price growth, such as Sydney and Melbourne are starting to see the market "correct" - or return to something considered normal for those cities. However, this doesn't mean prices will drop drastically.
Zaki suggests you refrain from investing in a property in these cities until it is steady.
3. Watch these hotspots...
We've already mentioned Brisbane, but other spots in South East Queensland also continue to be smart locations to buy. Zaki also believes the 2018 Commonwealth Games will help turn the Gold Coast into a great investment location this year.
In Victoria, Zaki suggests watching areas north west of Melbourne's CBD, such as Melton. He believes the city's outer suburbs will continue to be fruitful, while inner city apartments will be greatly disappointing.
4. What you need to know about house pricing
Zaki believes the following factors will influence housing prices in 2016:
- Interest rates: While the rates are expected to remain low, prices won't fall until the RBA raises interest rates again, which is unlikely to occur before next year.
- Stricter regulations: The Australian Prudential Regulation Authority’s tightened regulations make it more difficult for buyers to have loans approved, limiting the amount of competition in the market.