At the tail end of last year, there were a bunch of articles getting airtime around the cooling of Sydney’s property market. While this may be a welcome change for many, it’s also just one of a whole host of changes happening in the property market right now. Some of these changes will be welcome news to potential buyers, while some are red flags to avoid at all costs.
1. More people adopting rent-vesting.
Remember not too long ago the Australian dream was locking in your dream home after years of saving while renting? It turns out that’s not really what people are opting for anymore. Instead, there’s a growing trend of people buying houses they don’t intend to live in, and renting in their dream suburbs off the back of their investment property. Knowing this is key for both people looking to rent or buy across the nation, as it’s now much more socially acceptable to buy a two bedroom shack in the middle of nowhere provided you know it will be attractive to tenants –then, the lush beaches are yours for the renting!
2. Phantom mortgage rates are popping up.
This is a rather scary one. The home loans marketplace has been heating up exceptionally over the past few years – the rise of online lenders being a key contributor – and as such there’s some really competitive rates being dropped into the hungry mouths of homebuyers. Unfortunately, some providers are taking it upon themselves to hike their rates out-of-cycle. While it’s perfectly within their rights to do so, it will burn unsuspecting mortgage holders, who will be out of pocket every month afterward. That is, unless they find a better rate.
3. Sponging is socially (more) accepted.
We all know the tired comedy trope of the 35 year old who still lives in his parents’ basement, however it turns out that more Australians are doing exactly that in order to save for their first property. If you’re struggling to cap those last few thousands, asking for your old room back might be a good move. It is only temporary, and mum’s been telling you that you need to spend more time with her anyway.
Bessie Hassan is a widely published writer and a consumer advocate at finder.com.au, one of Australia’s largest comparison websites. As well as being a word nerd, she’s passionate about helping Australians find better.
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