Current economic conditions in Australia favour those looking to sell property – but this “perfect storm” may not last for long.
After a tough 12 months for the Australian economy, recent data has revealed a surprising trend: houses are gaining value right across the country.
According to CoreLogic, prices have been rising since late 2020. In quarter ending March 2021, the national house price rose 2.8 per cent, buoyed by significant gains in the smaller capital cities.
Brisbane showed decent growth in the quarter ending March 2021 at a whopping 4.8 per cent.
CoreLogic reported that the “housing market strength is being supported by a disconnect between supply and demand” with advertised stock levels “25.5 percent below the five year average”.
Kate Melrose, Ingenia’s General Manager of Project Sales, calls current conditions “the perfect storm” for those wishing to cash out of the family home.
“The low interest rates really are underpinning the property sector and encouraging people to buy at the moment,” she says. “Auction clearance rates are back at pre-COVID levels, and we’re seeing really solid price escalation.”
“Older Australians who cash out of the family home now will be in a better position to help their kids if and when it’s needed. They will also be ready to enjoy travel again when the vaccine makes it possible,” notes Melrose.
Additionally, Melrose points out that Australia’s high per-capita immigration rate has traditionally been supportive of property prices. “But immigration has all but ceased as a result of COVID. The implications of that don’t seem to have flowed through to the housing market yet, but we’re expecting them to when immigration picks up again.”
We have experienced record high enquiry levels, which has been very encouraging for downsizers. Those how have been deferring their decision to downsize are now looking to take control of their financial future by capitalising on the unprecedented market activity.
What’s more, after the social isolation many felt during COVID, more and more people are seeking a community with likeminded neighbours where they can do as much or as little as they choose.
And those who subsequently choose to move into community living under the land-lease model, such as an Ingenia Lifestyle community, can keep more of that money in the bank.
That’s because Ingenia Lifestyle residents own their houses but lease the land on which they sit. As a result, the initial purchase price is much lower than comparable homes elsewhere. And many residents can access government rental assistance to offset the cost of renting the land.
“There’s a mental freedom that comes from having more money in the bank,” says Melrose. “In times like these, having that sort of financial flexibility is incredibly valuable.”
Learn more about how you can release the equity from your home and enjoy a more secure future. Call the team at Ingenia Lifestyle Chambers Pines on 1800 135 010 or go to liveinlogan.com.au.
