Why should you buy now?

Published Thu 12 Dec 2019

“I’m not sure it’s the right time to buy, I hear interest rates will come down more”
“The economy isn’t going so great, so I might wait”
“Garry at work said it was a terrible idea to buy property, bit coin was the way to go…”
“We are going to go overseas and will use our deposit to pay for the trip; I mean property isn’t going anywhere is it?”

Why should you buy now? Ultimately there is never a perfect time to buy property, its an expensive exercise that for most of us may be the most expensive investment we are ever involved in. But do you know what is worse than making the wrong choice?  It is waiting so long that you are priced out of your preferred market e.g: If your goal is to purchase in Armstrong Creek and you are forced to buy in Winchelsea (apologies to the lovely people of Winch).

Did you know that the median for sold house’s in Armstrong Creek during the 2014 calendar year was around $333,000?  Fast forward to the median price for the 2018 calendar year and it was around $530,000. That’s just under $200,000 of capital growth over a 4-year period or a 60% increase over that same period.

Figures sourced from https://www.realestate.com.au/neighbourhoods/armstrong-creek-3217-vic

That’s an average of 15% percent per year, not bad given you get around 1% of bugger all in a savings account. Now we all know that property prices do go up, they sometimes go sideways and some-times they will go down. But ask your parents how much property was worth in the 1980s, 1990s, 2000s and you will see a pattern, over the long term the capital value of property is always going up.

The questions then could be why would this continue, maybe it has finally reached its peak? I will answer your question with another question. Do you know by how much the City of Greater Geelong’s current population of 252,000 will have increased to in 2041?

Figures sourced from https://profile.id.com.au/geelong/population-estimate
https://forecast.id.com.au/geelong/population-summary

Answer: The projected population of Geelong by 2041 is 393,000 which is an increase of 140,000  people calling sleepy hollow home. What does this mean for house pricing? Well, it’s a simple matter of supply and demand. If you have a greater number of people and not enough houses what do you think will happen? It’s a rhetorical question, I don’t need you to answer it.

Well over 4 billion is being invested in and around Geelong in major infrastructure projects, either with construction underway or currently in the planning process. This injection of funds into the area will have a positive effect on house prices, employment, population and tourism.

With interest rates at record lows, investors still sitting on the fences and the first green shoots of the market starting to rebound from its correction over the last twelve months, it is the time buy. Don’t wait until you start reading news articles about the property market booming, or Geelong becoming a property hot spot once again – by then it is too late as the capital growth train has left the station.

But I’m not ready, I need more time to save? The beauty of buying untitled land is you can lock in today’s price, but you don’t have to settle for 12-18 months depending on the stage. Drop in for a confidential chat with one of Team Warralily’s property experts and we can guide you on the way to becoming a property superstar.

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