Right now there are positive trends in the market that should bring investors back to the table.
It’s a far cry from 2017, when regulators halted the rush by curbing investor lending and the use of their preferred tool of interest-only loans.
So what’s changed?
Firstly, rental homes are in short supply across some regional and coastal areas along with outer suburbs in Sydney, Perth and Brisbane. Vacancy rates are close to zero, as city slickers move into markets that were already undersupplied.
What’s more, new apartment completions are forecast to fall to a nine-year low next year as developers delay launching major projects because of low overseas migration, fewer international students and a lack of investors.
National property consultancy Charter Keck Cramer expects just over 43,000 apartments to be finished this year, a 10 per cent rise on 2020, as projects that were under way or launched before the COVID-19 pandemic are completed.
The number of completed apartments in 2022 is forecast to fall 44 per cent to just over 24,000 and then to 15,400 in 2023 – based on the current pipeline of projects either under construction or being pre-sold.
Less supply with strong demand will further increase the property price which will make the market more attractive to property investors in the next few years.
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We’ve been helping hundreds of investors understand their borrowing capacities and finance their deals. If you’re not sure about your position as you enter the world of property investment, please don’t hesitate to call us for a free consultation session.
