Whenever experts insist that his forecasts for real estate in major Australian cities are correct, another expert immediately retorts with a New York-style 10-year high price tag.
In spite of the public opinion that the market is moving normally, one thing is highly consistent: watch out for the purchase of apartments.
How bad the apartment business is, just look at this example. Alexander Tashevski-Beckwith saved 40,001 to buy an apartment while he was at work tutoring high school students. The 20-year-old had already been granted a NAB loan and the bank suddenly reneged after evaluating the 47-square-meter apartment he had bought. The loan was withdrawn. He may now lose the down payment and pay thousands of yuan in attorney's fees. Apartment problem
This case was used by real estate experts to remind buyers of the need to be more careful when buying apartments this year. "oversupply is a big problem," said Niro (Niro Thambipillay), a property investment expert. "in Sydney, for example, a lot of homeowners have come together to buy lots of land from their neighborhoods to developers."
Alexander's story also suggests banks are tightening mortgage standards. "the bank thinks the apartment is beginning to show a lot of risk. This puts buyers in a difficult position. When you pay a 10% down payment, credit standards change or your house is undervalued, you lose a lot of money when you don't get paid for it. " Niro warned. Choose the right apartment
Despite the oversupply of apartments in Brisbane, Melbourne and some parts of Sydney, it does not mean that buying apartments is the last resort, said Richard Harvey (Rich Harvey), president of the Australian Association of Real Estate buyers. "in some parts of Sydney, like (Bondi) and (Surry Hills), I don't see a lot of apartments under construction." He said。
He agrees that buyers, especially first-time buyers, need to be cautious about buying flats.
"there must be a good developer, a good location, a small apartment and an understanding of the purchase contract. There is a lot of uncertainty in the building. " Raise interest rate
Niro pointed out that banks are very careful with apartment loans and are starting to stay away from the central bank's decision on interest.
Don't expect banks to follow suit because central banks keep interest rates low. "We have recently seen banks raise rates beyond the central bank's base interest rate, and they will continue to do so this year. They will also tighten home loans to buyers and investors. The low interest rate cycle of less than 4% is almost over. "
Banks have also raised interest rates on term loans. "interest rates are still very low now, but soon enough, interest rates will rise." The stand-alone house is safe.
Richard Harvey predicted moderate growth in the housing market. He said buyers in major cities should focus on high-quality properties if they want to enter the market. "buy areas with schools, transport lines and infrastructure."
. "in Melbourne, for example, people should not be afraid of areas like Frankton (Frankston). There are a lot of cheap houses in the area that can be renovated. " If your budget can only buy areas 10 kilometers away from the center of the city, as many buyers in Sydney and Melbourne do, it's time to look at the suburbs that have fast and convenient transportation to connect the city centre. "once Sydney's Baoqin Mountain (Baulkham Hills) was out of the buyer's radar, but now it's ready for a train," Richard said.
Property investment expert Ronaldo expects Sydney's housing market to be flat and Melbourne's slightly lower, as oversupply of apartment units lowers the market as a whole. Enter the market
Richard Harvey pointed out that although the housing market will not be as high as rockets this year, but the sooner the better. Those who believe that the housing market will fall like a cliff will have to go through a few times of economic growth before it will erupt again, and it will be beyond remorse. "there will be some corrective adjustments, but they will rise in the long run. A lot of people called me and said they had to wait until house prices fell. But when they call me again a year later, they'll find that house prices are up another one hundred thousand. "
