PK Team Buys Over $30 Million Worth of Property in 72 Hours
It has been a busy time at PK Property of late, but it's also been a busy time at the RBA.
All I can say is that a cut is better than an increase, but at the end of the day with all the higher cost of living pressures, it's like trying to put out a bushfire with a glass of water.
What will be interesting moving forward with an election to be announced any day now, will be all the housing reforms in regards to what stimulation measures will be put in place to get that first home buyer vote.
There is no doubt that the Government is getting pressured to relieve the rental market by helping people at the lower end to buy, not rent. However, in my 30 years in real estate all that it does is fuel the lower end of the market, and those buyers end up paying more for the property than the bonuses that were given by the government.
We are so far behind in regards to how many houses need to be built Australia wide to relieve the pressure cooker, and it's going to be a long time before we get on top of this housing problem. But let's not be too pessimistic everyone because the Australian public has spoken fervently about this subject and the Government is finally listening.
And please understand first home buyers, if too much gets built in the area and surrounding areas you are buying in, your capital gain will be very low, or go backwards, and that doesn't help anyone to move forwards. Actually, if you are going backwards or breaking even after your interest payments, you might as well go out and rent a property in the area you like, and buy an investment property that will have some growth, and also allow some negative gearing deductions. Anyway, that is another topic and conversation for another time.
PK'S Sydney Property Market Predictions
I am still sticking to my guns that there will be 4 interest rate decreases by the end of the year, and that at present the owner occupier home loan is at about 5.75% with the larger banks, and by Christmas, it will be 4.99% with all of the major four Banks. I am also tipping that the unemployment rate will be over 4.5% by Christmas. And yes, inflation will be under control and put back in its box.
PK'S Hot Property Tips
I believe the election will be called soon, and at the end of the day it won't matter which Government gets in, if interest rates drop a full 1 percent, and you are giving people home loans at 4.99%, and the bottom end of the market is getting stimulated by both federal and state governments, there is the formula for the next property boom.