3 Reasons It’s a Great Time to Invest in Australian Real Estate Right Now.

You’ve saved a deposit, got your finance approved and are ready to pull the trigger on buying a house and land package – and after COVID-19 is over. Or maybe you haven’t quite made up your mind but find that the lower cash rate means your savings are just sitting there, not earning interest but certainly earning bank fees. However, lockdown doesn’t mean your dreams of a new home are slipping away. So here are three reasons why now is a great time to invest in Australian property.

1. NSeize the opportunity sooner.

Most land for sale in Sydney is greenfield land – meaning ideally located land that has not previously been built on. After buying this land, it takes 6-18 months to register for construction; During that time, roads were built and services such as drainage and electricity were connected to the site.

A 10% deposit is required to purchase land, however the remaining amount will not be payable until the land registration process is complete. This means you can secure a plot of land now for 10% of the purchase price, start the application process – and not pay anything else for another 6 to 18 months. Putting money down now means you’re guaranteed benefits and enrollment will continue even while Australia eliminates COVID-19. A delay means you have to wait even longer for your site to be ready to start construction, a few years from now.

2. Keep your cash flowing.

We all get excited when official interest rates fall because it means cheaper mortgages. However, one downside of low interest rates is that they start to cost savers money. Low cash rates mean low interest returns for savers.

With official interest rates currently at a record low of 0.25%, keeping your money in the bank has never made more sense. If you have saved a deposit, you will find that keeping it in the bank can soon cause you to lose money. Bank fees still apply on the balance even if you don’t earn any interest – meaning you’ll be paying the bank to hold your money. However, putting those savings as a deposit into a piece of land means you are putting your money to work as the value of your property increases over time.

3. Get a ti stepcome before others.

The Sydney property market has been plagued by FOMO since late 2019. That was momentarily paused thanks to COVID-19 isolation measures, but is likely to come back into force once the pandemic passes. The next few weeks are a blessing for anyone looking for breathing space and less competition on the land they want to buy. It will give you more time to consider your options and make a decision without having to listen to other buyers. Is this you?

Please call us +61 478 866 868 to speak with a sales consultant. Our team is still working through this period and looks forward to providing you with the advice you need.