With interest rates at an all-time low, now could be the perfect time to upsize to the home you’ve always wanted…
Australia’s economy is facing a period of uncertainty with fears over the coronavirus. But, the property market is showing strength, particularly for lifestyle-driven purchases.
This resilience in the housing market is echoed in recent news headlines. Nerida Conisbee, chief economist at realestate.com.au, says the market is not facing the same concerns as it was just 12 months ago.
“Buyers remain active and it no way resembles the uncertainty around the Royal Commission outcomes and Federal election, which were having a much deeper impact,” Consibee says.
Consibee predicts that any price correction will be followed by a big recovery. Finance figures show that many buyers have already decided this could be a good time to buy and a perfect opportunity to settle down into their ultimate property.
“People are getting access to finance again and interest rates are low,” says Conisbee.
“Our Smart Loan mortgage broking business tells me that a lot of people have pre-approvals to buy homes, but they can’t find the properties they want. So, I think we will see a shift to more people knocking down and rebuilding, as well as more people looking at house and land opportunities.”
If you are one of the people thinking about buying or building a new home soon, it’s worth looking further ahead and upsizing to a house that will suit your lifestyle now and in future years.
Conisbee says upsizers in particular are struggling to find the homes they want in the established market, so they will find house and land offers especially appealing.
“They have money but there isn’t much existing stock that suits them. I think they will become a big part of the house and land sector across the country,” she says.
Shaun Patterson, general manager of sales and marketing at Porter Davis, agrees that there are some great opportunities for buyers to find their perfect property. He says there is interest in the house and land sector across all demographics, particularly among first home builders and upsizers.
“Last year there was a lot of uncertainty about the property market with the Royal Commission, the federal election and tightened lending conditions. It was a perfect storm that appears to have blown over,” Patterson says.
A helping hand
But while potential off-the-plan home buyers are confident, the cost of property is still an issue in major cities. For example, the citywide Melbourne median house price recently topped $850,000, according to REIV data.
To tackle the challenge of home affordability, Porter Davis has launched an initiative to help buyers secure their new home – the 20+20 campaign.
The 20+20 promotion allows home buyers to save more than $40,000 on house and land packages via a $20,000 discount from Porter Davis and up to $20,000 from its land developer partners. More than 100 lots and 400 packages in over 60 estates are part of the promotion.
Furthermore, to mark Porter Davis’ 20-year birthday, the company is offering $85,000 worth of added value at no extra cost on its Prestige range. This includes upgrades such as Fisher & Paykel appliances, a quality butler’s pantry or galley and above average ceiling heights of 2740mm on the ground floor and 2590mm upstairs.
Buyers who opt for the Lifestyle range can benefit from $53,000 of added value and Advantage home buyers will get an upgrade of $30,000 for a cost of $4,999.
Make the dream happen
Patterson expects the 20+20 campaign to be popular with buyers who are ready to upgrade and upsize and who are ‘trading space for place’.
“There are many reasons people choose to upsize. It could be because of a new baby on the way, children growing up, or elderly parents re-joining the family home,” says Patterson.
“Whatever the reasons, they’re choosing premium estates or locations with smaller lots. On those smaller lots they’re choosing bigger homes and taking advantage of surrounding amenities, like parks and playgrounds.”
Conisbee agrees that house and land deals currently offer attractive lifestyle options for people who want to make their own stamp on their dream home.
“Now is a good time to build from scratch so you can make decisions about exactly what you want in your home – from the layout and exterior to the finishes and appliances,” she says.
“Finance is cheap and there are good deals available from house and land developers. It’s a perfect time to make a move.”
All pictures supplied by Porter Davis.