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With lower interest rates and buyer demand building, Australia’s property market may be entering its next growth phase. Are you ready to move?
According to leading economist Peter Munckton, Australian house prices could increase by 10% to 15% over the next two years, following historical patterns after rate cuts by the Reserve Bank.
This time, several factors are aligning:
These indicators suggest that buyer activity is likely to ramp up quickly -potentially pushing prices upward well before new housing supply can catch up.
While it's understandable to be cautious in uncertain times, deferring an investment decision can come with its own set of financial drawbacks. Here’s what many prospective investors overlook when choosing to “wait and see”:
For example, if a $700,000 property rises by 10% in the next two years, that’s $70,000 in additional equity you could have gained. Waiting may mean missing out on growth that compounds over time. What’s more, delaying a purchase could also mean literally thousands in increased prices for you down the track.
If you’re currently renting, those payments don’t contribute to your future wealth. And with rental costs continuing to rise, you could spend tens of thousands more over the next few years, with no long-term financial return.
Inflation gradually erodes the value of your savings. As property prices rise faster than wages or bank interest, waiting could reduce the kind of home or investment you can afford down the track.
Investment property owners can access a range of tax deductions, from negative gearing to depreciation and interest offsets. These benefits can enhance cash flow and ease financial pressure—advantages that renters don’t receive.
Investing early gives you more time to benefit from capital growth, rental income, and compounding returns. Delaying by even a few years can push out financial milestones or extend your reliance on work income longer than planned.
Inflation gradually erodes the value of your savings as property prices rise faster than wages or interest your money can earn. Waiting could limit the property options you can afford down the track.
Experts believe the strongest growth will be seen in regional locations like the Sunshine Coast in Queensland and the Shoalhaven in NSW. Both areas have been identified as offering the perfect blend of lifestyle, value and proximity to services, with sustained population increases.
Houses remain the most popular property type, with many people looking to relocate to a house in more affordable areas, versus higher density options in metro locations. With demand expanding and supply trailing behind, the market conditions are shaping up for steady upward pressure on prices.
No one can time the market perfectly, but you can prepare strategically. Whether you're a first-time investor or considering expanding your portfolio, taking early steps may place you in a stronger financial position in the years ahead.
Every decision has trade-offs, and investing in property is no exception. But with economic indicators pointing to a potential upswing, the cost of inaction may become more evident over time. Partner with DPN to explore tailored, research-backed property investment strategies suited to your goals and financial position.
Speak with a DPN expert today to discover how you can start building long-term financial confidence—without the pressure of rushing into the market.
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