4 Reasons to consider investing in property now

Have you been patiently waiting, wondering whether or not to purchase your 1st investment property in 2023?

You’re not alone. Many buyers have been shocked, what with all the changes in the market.
Whether or not now is the right time to buy really depends on your financial situation and objectives, but there are certainly some convincing reasons to at least think about it. Your 1st Street Melbourne Mortgage Broker can discuss these with you.

The drop in housing prices may be stabilising

As a first-time investor, your 1st Street Melbourne Mortgage Broker may be able to help you to take advantage of property prices.
Property values have been declining for several months following consecutive cash rate increases by the Reserve Bank of Australia (RBA). But lately there have been signs the decrease in property prices could be easing.
According to CoreLogic, the national decline was only -0.14% in February – the least monthly fall since May last year.
CoreLogic’s research director, Tim Lawless, said the steadying in housing values over the month corresponded with regularly low advertised supply levels and a rise in auction clearance rates.
“This trend towards a below average flow of new listings has been evident since September last year, coinciding with a loss of momentum in the rate of value decline.”

Rents are on the rise

Migration has resumed with a bang. Demand for rental properties is exceeding supply in many markets and rents are going through the roof.
Last year we observed rents rise to a record high of 10.2%, getting a median of $555 per week.
Meanwhile, rental vacancy rates hit record lows in February. Nationally, just 0.8 per cent of rental properties were vacant.
If you’re in a position to invest, you may benefit from the current conditions and find a property with an attractive rental yield. Imagine what you could do with that extra cash flow.

We may be over the worst of the cash rate hikes

While nobody has a crystal ball when it comes to monetary policy, some experts think that the majority of cash rate hikes may be behind us. 

RBA Governor Philip Lowe did indicate recently that the board was contemplating a pause after 10 consecutive interest rate rises, but the timing would rely on incoming economic data. 

“We also discussed that, with monetary policy now in restrictive territory, we are closer to the point where it will be appropriate to pause interest rate increases to allow more time to assess the state of the economy,” he said. 

“At what point it will be appropriate to pause will be determined by the data and our assessment of the outlook.” 

Potentially less competition

With all the hesitation about where interest rates and property prices will go, many buyers are waiting and watching. 

In January 2023 in seasonally modified terms, the value of new loan commitments for total housing dropped 5.3% to $22.1 billion, after a reduction of 4.3% in December. It was 35% lower compared to a year ago. 

For owner-occupier housing, it fell 4.9% to $14.7 billion, which was 35.1% lower compared to a year ago. Meanwhile, for investor housing, it fell 6% to $7.4 billion and was 34.8% lower compared to a year ago. 

The decreased appetite for finance indicates there’s less buyer competition, so you may have an improved chance of getting the property you want.  

Ready to get started?

Whether or not you should invest in property at the moment comes down to your individual situation, but one thing’s for sure – all the right essentials are in place for opportunistic property investors.
If you do choose it’s right for you, talk to your 1st Street Melbourne Mortgage Broker about your finance options. We’ll go over your borrowing capacity and line you up with the appropriate investment loan to suit your needs.
Get in touch with your 1st Street Melbourne Mortgage Broker today.

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A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz