In an article for the property site realestate.com.au, Peter Kouilzos succinctly puts forward why he feels 2014 is one hell of an investment year. Unlike what any prospective buyer would like to imagine, this is not about capital growth. Kouilzos contests that while the growth will be more along the sustained lines, there is a special factor that makes 2014 a much coveted-year for property investors. Here is taking a look.
Delightfully low interest rates
Interest rates are low for quite some time and if they have any chance of falling further, they will do so now before correcting themselves and going for an upward spike. In the low cash rate situation which prevails presently, home buyers and investors can opt for a variable or a part fixed/part variable loan at what may turn out to be delightfully lenient repayment terms.
You can read the original article here.
Sustainable growth on cards
I think Kouilzos nailed it when he said we are not near any property boom. Yes, a few capital cities (headed by Sydney) have shown remarkable value growth and the potential for further good performance. This said, the growth wagon will mellow down a little in 2014 to avoid a scene of ‘unaffordable housing’.
What’s good for the property market is good for the renovation industry, too
Thanks to the low rate regime, even the construction industry has got a fillip. This, in my opinion, is the time to cash in for those planning home renovations, too. After a really tardy few years, the labour industry is back on its feet, spurred largely by in-thick-of-action developers and constructors.
Save your dollars, act now
Keeping in tune with the demand-supply dynamics, it is only fair to assume that the cost of labour will keep increasing for at least some time now (till the renovation market is saturated) and the earlier you set yourself up for home reno, the better for your dollars.
And in case you did not ponder over it, many homeowners haven’t made a change to their mortgage repayment structure despite low interest rates. This means that they are in a position to release greater equity (ready collateral) and borrow more handsomely for renovations.
What kind of home extension is on your mind?
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