Blog - Residential
2016 – THE BEST TIME FOR FIRST HOME BUYERS
The slowing down of the Chinese economy
With the recent uncertainty and slowdown of the Chinese economy, there is a reasonable expectation that there will be less Chinese buyers in the Australian market. This lowered demand for international investment from China means less competition for local buyers and in all probability more stable prices and moderate growth through 2016.
What Property Observer thinks
Interestingly enough, Jonathon Chancellor of the Property Observer stated this week that the “Americans outnumbered the Chinese in the latest FIRB divestiture hit list”. American buyers have always maintained an interest in Australian property and it will be interesting to see if their numbers grow given the friendly exchange rate.
New lending criteria implemented
During 2015 the Australian Prudential Regulation Authority (APRA), the regulatory body for banking systems, have imposed a new set of restrictions limiting banks to allowing only 10% of loans to come from investor lending. This is proof of an attempt to slow down the market, as with a clamp down on investor loans, one will see even less competition for the everyday Australian and will increase the ease at which the first homeowner can enter the market.
What does this mean for Australian buyers?
So what does this mean for the average Australian seeking to enter the property market? Well it’s simple. For an Australian looking for their first home, one could not pick a better time to do so. With the RBA holding the cash rate at a record low 2% and with less competition from overseas as well as local investors, the property market is providing the perfect environment to buy your first property.
Conversely it offers the same opportunity to those who are looking to upsize, downsize or just make a move. Stable conditions mean those looking to move can be confident they are selling and buying under the same market conditions.