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Queensland is experiencing a property boom that could see prices increase by more than 20 percent in some areas and last for years to come.
Fears of a collapse in real estate prices in the wake of the pandemic have been replaced with a surge in confidence in the Sunshine State’s housing market, driven by an exodus to a healthy lifestyle, affordability, infrastructure spending and continuing low interest rates.
Leading the way in Moreton Bay!
Economists at Westpac who forecast price falls of 10 per cent at the start of the year are now predicting a significant rise in greater Brisbane property prices over the next two years — the highest of any capital city in the country.
The Samford Valley region has been the star performer in the Moreton Bay area, wIth the median home price sitting at $1,187,500, and the average rent at $700/week. This represents a capital gain of 22.74% for the past year, higher than the national average. (Domain’s House Price report showed that for the 2020 December quarter, Australia’s national average price for a house was $852,940)
Tree Changers pushing up values
Buyers are marching out of capital cities and into regional areas, snapping up homes in tree and sea-change destinations – some without setting foot inside the property.
City dwellers with investment properties in regional areas first rushed to their holiday homes to wait out the Corona virus pandemic in March. Other buyers have then been following suit, seeking more space, fresh air and safety.
What if I’m staying put?
An increase in home values means an increase in home equity. That means that it is a great time to review your lending because your loan to value ratio (LVR) decreases. This may open the door to refinancing as the more equity you have, the more competitive your interest rate should be. Many lenders have extra sharp behind the scenes rates for loans that are less than 60% or 70% of the property value. However, your bank will not be proactively repricing your loan as your equity grows so it is always best to use a Mortgage broker who will.
Record Low Rates Continue
Interest rates continue to remain at record lows, with fixed rates leading the way below 2%. If you haven’t reviewed your lending in the past twelve months, you’d be surprised what savings and cash backs are available. It costs nothing at all to compare your current lending with the wider market by seeking the services of a professional who acts in your best interest.