News & Blog
Jan 27, 2015 at 12:08 pm | 0 Comments
This year is likely to see a go-slow pace in Australian property prices. As per Fitch Rating’s Latest Global Housing and Mortgage Outlook reveals that while house prices will come down in 2015, this won’t deter people from securing property investment loans.
According to Fitch Ratings, demand for investment loans is expected to be higher than ever, with 50% of all home lending for the year likely to be granted to investors. However, they have to be prepared for the possibility of rental yields dropping to under 3.5%.
Property investors will be weighing up locations of Aussie Builders’ luxury homes that will offer best returns. If Fitch Ratings’ are considered, Sydney and Melbourne could see disappointing results whereas Perth is forecasted to see rise in price.
However, if you look at historical data rather than assumptions, you may find that Sydney and Melbourne offer the resilient growing potential. Capital city home values were found to be up 7.9% in 2014, the latest CoreLogic RP Data Home Value Index reveals, although these two locations outperformed the rest of the pack.
Sydney’s home values were up 12.4% over the course of the year, while Melbourne was the only other area to have registered an increase that exceeded 5%. The Victorian capital’s properties appreciated 7.6% over the 12-month period.
It’s therefore essential to weigh up what the market has to offer before applying for a Fixed Price House And Land Packages or any property investment loan.