Wonder why the property market sentiment is riding so high? Here are the 3 biggest property trends that are currently occurring all across Australia.
1. Record High Housing Values
Australian housing values have just reached a new record high as prices continue to rise across the country. With market sentiment soaring, we’re seeing RBA predictions that house prices could possibly increase by 30% over the next three years.
With better housing affordability, an opportunity for a lifestyle upgrade and the new found popularity of remote working arrangements, current housing values have surpassed pre-COVID values by approximately 1.0%, and regional housing values are also seen to rise at more than twice the rate of capital city markets due to the effects of COVID-19.
2. Record Low Interest Rates
Interest rates have never been this low.
Home loan rates seem likely to stay at ultra-low levels for the foreseeable future. Reserve Bank governor Philip Lowe has also stated that the RBA board did not expect to increase official interest rates "for at least three years".
Naturally, when interest rates are so low, they tempt people into the market. With so many people in the market, there will be hot competition for Sydney properties in 2021, which will push up prices.
3. Record High Refinancing Numbers
With record-low interest rates, it makes sense that we’re also seeing a record number of mortgage holders refinance their mortgage to save themselves thousands of dollars.
But be careful you don’t become interest rate-fixated. When you refinance your home loan, you need to consider fees and charges as well as the interest rate. You need to be sure that in refinancing your home loan that you’ll be better off in the long run after taking into account all costs.
If you are considering a refinance now, KBRZ offers a wide range of choices with very low interest rates that are tailored just for you.
How KBRZ Can Help
Thinking about hopping on these record breaking trends and buying your own property in 2021?
If this is the case, a good first step is to speak to our team at KBRZ to assess your options. If you are currently interested in purchasing a property, or if you have any further questions, please feel free to contact us today. With our extensive network and years of experience in the industry, our team at KBRZ can provide tailored investment loan solutions that will allow you to maximise your wealth regardless of your circumstances.