As Australia enters the stabilisation phase with stimulus coming to an abrupt end in the end of March 2021, the property markets in Melbourne and Sydney are set to propel forward with likely gains of 10-15% in 2021 and 2022. What exactly is pushing the property prices in major cities higher, and is the growth sustainable?
The projected “crash” of 2020 was anything but significant. As the market registers a swift V-shaped recovery fuelled by record low mortgaged rates, we could very well be in store for a rapid increase in prices of properties in the next 24-36 months. However beyond 2024, there are signs to tread carefully as we are bottoming out on mortgage rates, so further catastrophes could see a delicate equilibrium broken.
The demand for construction and renovation has truly skyrocketed in 2021, with many booked out until 2022 and beyond. With such eager market demand, the signals are pointing towards a stellar period ahead in property appreciation. What then, can you do to capitalise and ride this imminent incoming wave? Here are some ideas to get you started.
- Knockdown and Rebuild: Is the property overdue for an upgrade as a whole? Have you considered a knockdown and rebuild, or even the possibility of sub-dividing if size and regulation allows? This is often a great way to maximise value and hit 2 birds with 1 stone.
- Extensions: Whether it’s decking, pool, granny flat, gazebo or even a second story addition to an existing dwelling, an increase in the size of a property often translates to better valuation.
- Targeted Renovations: This could yield the best value for money, especially if one’s property is already in good condition and only targeted improvements are needed.
Do not miss out on the opportunity to ride the property wave up by planning your next move.