Shrugging off concerns about increasing interest rates, it seems that confidence is slowly creeping back into the property market. Recent figures released by the Australian Bureau of Statistics (ABS) show that loans to owner occupiers are 8% higher than at the same time last year.
The reason behind this can be attributed to the low vacancy levels across all capital cities and the subsequent high average rental income. Market analysts are predicting that rental incomes are set to continue on their upward trend meaning better investment returns for the property investor. Additionally, housing prices have remained relatively stable across Australia with an average price rise of 1.4% over the September quarter (ABS). Unsurprisingly, Perth led the charge this quarter with housing prices over this period improving by approximately 14%. This was followed by Darwin with increases amounting to approximately 13%. All other capital cities apart from Melbourne (-1.6%) recorded positive increases.
So... what can we deduct from this?? Hopefully, this tells us that now is a good time to be venturing back into the property markets. Hopefully, the cycle is about to kick back into gear and property will become the stable investment that it always has been. However, before diving head first back into the market, do your sums! Make sure that if the market turns against you, you can afford it. Remember ... . Investing in property is usually a long term investment and not one to be treated lightly.