People often consider various things when securing a property. Most of the time, the greatest consideration goes to finance (and we totally understand it). But, reports showed that for the next few years, the prices of these properties will continue to grow–especially in the heart of Tasmania: in Hobart. 

So, if you wish to invest in a property, here’s a friendly tip: do it sooner! (*wink)

According to CoreLogic’s Research Director, Tim Lawless, for the past three months, Australian housing values are rapidly rising, up to 6.8 percent, even if the growth conditions have slowed down. For the month of April, house prices across Australia increased to an average of 1.8 percent. Additionally, Patrick Berry, Director of 4one4 Property Co., says that there are experts who are eyeing for a 19.1 percent increase in Hobart prices in the latter part of 2021. 

You may ask yourself then, why not rent instead?

In a report by REA Insights Buy or Rent Report, it presents that it would still be cheaper to purchase than rent in Australia, specifically in Tasmania, for 85 percent dwellings, hence, renting is an impractical option.

Our decision-making process and priorities might have shifted since the start of global pandemic–including the position of real estate. But, as Mr. Lawless mentioned, the preference in housing, indeed, changed, but flexible working arrangements have urged a greater demand for housing still.

The same situation in Hobart was pointed out by Mr. Berry where multiple offers on each property can be observed which result in buyers offering even more just to secure a property.

National Australia Bank’s (NAB) Residential Property Survey also shows that property  professionals expect price growth for the coming years with Tasmania garnering 6.4 percent for the first year and 6.0 percent for the next two years.

“With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower income households, are finding it harder to save for a deposit and transactional costs,” Lawless added.

In fact, experts believe that this situation will strongly be present in the future still, where Mr. Berry described it as “exciting for owners, but may be concerning for buyers”.

But, if you’re practical enough and you want to have a property which you can claim as yours, here are some pieces of advice from Mr. Berry: (1) You need to have everything lined up (e.g. work with finance brokers for the pre-approval of finance and sell any existing properties prior to buying a new home), (2) You’ll be needing some creativity skills in talking to local agents within your desired area to discover opportunities beforehand, and (3) For an area with a market paying 5-10% more for a home may be acceptable as it implies a huge volume of growth within it, for instance, the Hobart Marketplace.

Aren’t we right when we said “now” is the right time to secure a property? Whether it’s for residential or investment, time will serve as living evidence for this. A property’s value appreciates yearly. Indeed, Investing is the Next Big Thing!