As of 2023, CoreLogic reports the median house price in Australia’s combined capital cities has hit $882,006. What about city apartments? They come with a median price tag of $629,862. And for those seeking a home beyond the cityscape, in the regional areas, the median home value stands at $586,645. This means that many people can afford to buy a home only if they have a large deposit or can afford to take out a very large mortgage.
Yet, the challenge doesn’t end with the price tag. The hunt for affordable homes in Australia feels like a wild goose chase. The number of houses available for sale has hit rock bottom, while the demand from potential home buyers is skyrocketing. This scenario creates a seller’s market, causing houses to command prices much higher than their initial ask.
Combine these factors, and you get a clear picture of the Australian housing crisis. But, don’t lose heart. With the right advice and strategic planning, you can find your way through this complex landscape.
Here are some easy-to-grasp tips to help you navigate the property market effectively, whether you’re on the hunt to buy or rent.
Home-Buying Strategies Despite Crisis
- The Power of Compromise: It’s OK if the home you find isn’t exactly the dream house you imagined. Being open to compromise – on size, location or type – could be the key to owning your own home.
- Flex Your Timeline: The current market is a bit like a boxing match – it requires endurance and the ability to roll with the punches. So if you don’t score that knockout in the first round, don’t sweat it. Just keep bobbing and weaving, and you’ll eventually land a winning punch.
- Venture Beyond Big Cities: Major cities are akin to the VIP section of a concert – prime location but a hefty price tag. Why not explore the smaller towns or suburbs? They’re like the general admission area – you’ll still enjoy the show but at a much more affordable rate.
- Get Sneaky with Off-Market Purchases: Ever heard of secret menu items at fast-food joints? Well, think of off-market properties as the market’s secret menu. Reach out to real estate agents or attend property auctions to discover these hidden gems.
- Enlist a Buyer’s Agent: Sometimes, it’s just easier to ask for directions. A buyer’s agent can be your personal GPS in this real-estate maze, guiding you to potential properties and helping you negotiate a good deal.
- Track Interest Rates: It’s like the weather – unpredictable and can have a huge impact on your day. If rates are projected to rise, make sure you pack your budgetary umbrella.
- Aim for Rental Potential: Look for investment homes with a strong ability to pull potential tenants. A steady stream of strong rental income can not only help you cover all your expenses, but also can score you a handsome profit – and it’s less conspicuous than hiring out your driveway.
- Don’t Delay: In this fast-paced market, if you snooze, you lose. If a property ticks most of your boxes, it’s best to act swiftly.
Rental Market Strategies for Tenants
- Brace for Competition: Just as in the buying market, the rental market is competitive. Be ready to offer more rent or commit to a longer lease to stand out from the crowd.
- Stay Flexible about Location: Don’t get stuck in a single location. Broaden your search and you might just discover a fantastic, budget-friendly nook you hadn’t considered before.
- Consider Shared Housing: If you’re on a tight budget, a shared house can be a lifesaver. Plus, who knows? Your new housemate might turn out to be your next best friend.
- Know Your Rights: You have rights as a tenant. Familiarise yourself with them, so you’re ready to stand up for yourself if the need arises.
Don’t Fear Negotiation: If you’re not happy with a rental agreement, voice your concerns. You could end up scoring a better deal than you initially thought possible.
Turn The Crisis Into An Opportunity
With these tips, we hope to ease your journey and help you find the perfect place to call home. No matter if you’re a buyer or tenant, don’t let market conditions deter you.
To get personalised assistance, fill out our free online assessment form or ring us at 1300 889 743 to speak with a mortgage specialist.