4 Reasons to Buy in a Cooling Property Market
    • 6 December 2022

    4 Reasons to Buy in a Cooling Property Market

    As the RBA continues to increase the cash rate each month, Australian investors are now facing a cooling property market that offers more opportunities for those looking to buy. With house prices forecasted to continue to decline, many investors are continuing to hold out to snatch a more affordable investment for their portfolio.

    However, even though interest rates are on the rise, now may actually be the best time to buy an investment property. If you wait too long for the property prices to decline even further, you risk having to contend with a number of factors that may upset your plans.

    At Property Club, we help investors such as yourself make informed decisions about your investment future. Here are four reasons why you should still consider buying in a cooling property market.

    1. Smaller Lenders are Competing for Better Deals

    Given the increase in interest rates at the moment, the larger banks around Australia have had to reduce their borrowing capacity. Mortgage rates are expected to rise as much as 350 basis points within a 12-month period, restricting the big four banks from lending as much as they previously were.

    However, this has meant there is now more competition between smaller online lenders offering variable deals. In fact, even some of the larger banks have slashed long-term fixed rates on their home loans, driving up the incentive for other buyers to dive in.

    2. There is Less Competition

    Buyers around Australia are being deterred by the cooling property market and are deciding to wait for prices to go down. If you decide to wait with them, then you will be up against fierce competition when the market begins to improve. As soon as interest rates start to drop, the floodgates will open and a wave of buyers will be looking to jump into the market.

    You can get ahead of that wave and give yourself a real advantage by entering the market now while the competition is much lower – and while vendors are more willing to lower prices to sell their stock. If you wait too long, that investment property of your dreams may already be snatched up by another buyer. Property Club is helping buyers make the most of the current market, bringing them together to get bargain buys from those very vendors.

    If you’d like to find out how we can help you take advantage of this opportune time for buyers, contact Property Club for more information on the latest deals.

    3. The Right Time of the Year

    The end of the year is a time for many people to relax, refresh, and switch off. This goes for many investors around Australia, who put their purchasing plans on hold over the Christmas break. They decide that the market won’t change much over the new year and don’t bother pursuing their purchasing goals.

    This means that the market is wide open at this time of the year for smart investors to take advantage of the situation. We recommend you stay switched on to potential purchasing opportunities over the holiday season, as you may be able to easily jump onto a good investment while everyone else is busy not paying attention.

    4. Inflation is Going Down

    The RBA has made it clear that they will drop interest rates when inflation also starts to go down. As you can see on this graph, inflation has already begun to decrease, meaning the RBA can’t be too far behind in coming good on their promise.

    Graph 1 - Blog Dec 2022 Property Club

    Again, timing is everything here. As soon as interest rates start to go down, there will be a huge movement of people jumping into the market. Stay ahead of the pack and bring your buying plans forward to make the most of these quieter times.

    Contact Property Club

    At Property Club, we provide valuable insight, support, and guidance to our members. As a member you can complete a Financial Wealth Check to determine what your borrowing capacity is for purchasing a new investment property. To find out more, contact our friendly team on enquiries@propertyclub.com.au today!

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