All eyes are on the surging property prices as end is in sight for various government support packages and the mortgage freeze scheme provided by banks. Will this positively or negatively impact the heated property markets in the short to medium term?
As the construction industry and contractors continue to be snowed under by work with many now booked out months in advance, this is a real indicator and correlation with the demand for real-estate in the major cities around Australia. Despite the support measures coming to an end, data shows that it is unlikely for the market to see any significant dip beyond possibly some initial fears in the market. The market as a whole is much stronger than even months ago, with the V-shaped recovery continuing to play out globally.
With no interest increase in sight and pricing surge projected to continue at least until next year, what should homeowners and property investors be thinking about moving forward?
Land is King
Even though a nice house can be valuable, most of the time it is the land that holds the most value over time. One needs to understand this and take into account the land size, and also its location into context. An old house can be knocked down and rebuilt, however very little can change when it comes to the shape, size and location of the underlying land.
Renovation is Investment
Very few understand that when effective renovations are carried out, it is a note-worthy investment in the medium-long term as it has big potentials to appreciate the price of the underlying asset. This however, does not mean that all renovations carried out are equal. Common examples of note-worthy renovations are house extensions, flooring upgrades, kitchen make-over and bathroom uplifting.
Do not miss out on the opportunity to get those long overdue renovations completed. With the current market conditions, this may require more precise planning and timed execution as many contractors are now taking bookings well into the future. Plan your steps ahead of time and be ahead of the market.