What does this mean for Sydney's already over-inflated property market?
Two weeks ago, we met with a young couple who live and work in Sydney and want to buy their first home in Sydney. They've been married for a few years and plan to start a family in the next year or two. After months of going to auctions in Sydney and being forced out of the bidding they started to look elsewhere and entertained the idea of buying in the Central Coast region. They had a bad experience with a property shark in Gosford and came very close to buying a property well over-valued. They came to see us, frustrated yet hopeful we could find them a good property in Sydney that they could live in. Sadly, we weren't able to help them and yesterday's news of the RBA cutting the cash rate is just more bad news for them. Even with a deposit of $110K they will not be able to get into the Sydney home market.
This is because the Sydney real estate market is over-inflated, predominantly due to the amount of investment taking place, which is largely pushing out first home buyers. Even with the first home owner's grant, it is not nearly enough to help most first buyers into the market.
The RBA cutting the cash rate to 2% is only going to keep first home buyers out of the Sydney real estate market and keep the investors in.
So we came up with a strategy that allows them to get into the property market by investing in Brisbane. With just $400K you can buy a great investment property with great returns. This means that their money can work for them in the property market until the Sydney market calms down and they can afford to buy here.
Call us today and find out how we can help you begin an investment strategy that will have you living the life you deserve. 02 9016 2852