For example, CBA passed on the full 0.25 per cent rate cut to interest-only loan customers. NAB went even further, giving interest-only loan customers a 0.3 per cent cut.
For more than 12 months, investors have shied away from buying property in Sydney, put off by an increase in hurdles facing new loan applicants and the property downturn impacting values in Australia’s largest property markets.
This has changed in recent months, with the price of existing homes in Sydney and Melbourne increasing 3 per cent in the September quarter according to CoreLogic. Limited stock for sale is fuelling second-hand house price growth as demand swells. Buyers are also capitalising on Reserve Bank expectations that Australia will be a low-interest rate environment for years to come – and this is a green light for investors.
According to the Australian Bureau of Statistics, new investment loan commitments jumped 5.7 per cent between July and September 2019 – the largest month-on-month increase since September 2016.
The new home sector always takes a bit longer to catch up to the existing home market due to construction lead times. This means we’re yet to see similar price growth on new house and land packages – there are bargains to be had and if anything, buyer incentives are making this an even more attractive price proposition for customers.
The big opportunity right now for potential investors is in build-ready (otherwise known as registered land) house and land packages. A build-ready lot purchased in October 2019 for example, could allow for building to commence before Christmas at bottom-of-the-cycle prices.
These build-ready lots are in prime Rawson Communities locations in emerging property markets in Sydney’s north-west and south-west, such as Austral, Leppington and Marsden Park. Over the next decade, these locations will be epicentres of Sydney’s expected population boom; 2 million more people are expected to be calling Sydney home by 2030.
Click here to find out more about build-ready lots at Rawson Communities locations, and special incentives for investors in new homes in Sydney.