Happy New Year to you All!
What a year 2017 was, memorable to say the least! Here is a quick recap…
Sydney, in particular experienced higher than ever price growth, off the chart clearance rates and a wild frenzy of both international and national competition! Most likely fueled by low interest rates, a strong population growth and an abundance of investor activity!
However, following the introduction of tighter lending and fiscal policy changes, the second half of the year was dramatic still, although not so much in terms of growth…
Lending was curbed by LVR and ‘Interest Only’ restrictions, followed by a noticeable increase to interest rates for investors; which consequently played a role in the recent ‘cooling off’ seen across the Sydney market.
Towards the end of 2017 competition for buying property in Sydney had reduced, with clearance rates dropping to similar levels as those recorded back in 2015. International lending was hit with higher surcharges and greater restrictions were implemented; giving Australian locals more opportunity to compete.
On a great note First home buyer’s were given a wider entry into the property market with the reduction to stamp duty, higher LVR’s and lower than normal interest rate offerings.
So, what can we predict for 2018?
Interest rates are looking to remain at a steady low, with the encouragement angled at reducing consumer debt and maintaining steady growth. Sydney house prices are predicted to drop a little further still, which makes it a great time to secure a great deal in one of the most affluent and desirable cities in the world!
So what are your property goals for this year?
- Does your current loan still meet your short and long term needs?
- Is there a lower rate or better product out there for you?
- Do you need to extend your Interest Only term?
- Or is now is the best time to move to principal and interest repayments?
- Perhaps there is an opportunity to draw out equity and purchase another property, complete a renovation or even build that granny flat you have always talked about?
There have been many changes to lending policy in recent months, which is why we are here to help you better understand whether or not your loan still meets your needs.
Otherwise, if you are still dreaming about your first home or investment property then perhaps now is the time to get that New Year’s resolution off the ‘to do list’ and make it happen!
At Peasy we pride ourselves on providing a service that not only finds you the best product and rate, but also a service that helps to ensure you reach your property goals in the most efficient and budget friendly way!
Make 2018 the year you took a step closer and get in touch today!