Real Estate Investing: When is the best time to buy a house?
I’ve just read a really exciting report from BIS Shrapnel (the leading economic forecaster) regarding the outlook on housing. Well as an investor it got me extremely excited…if you are not currently investing, you’d better get your skates on.
According to Shrapnel’s chief economist, house prices are expected to increase by up to 40% Australia wide during the next five years.
Now we currently have a situation where demand for housing is higher than the available supply. Affordability is also at an all time low with most investors already benefiting from booming rental prices as a result.
BIS Shrapnel’s statistics show a current shortfall of 30,000 dwellings, and that figure is expected to continue rising. They are forecasting 60,000 by June this year and 129,000 by the middle of next year.
So what does this mean to you as an investor?
Rising interest rates are making people nervous at the moment and they are choosing to wait for rates to stop rising before they buy or build a property.
And we know that demand for housing is already quite high. So if the forecast is correct, and by the middle of next year there is even LESS supply, what will then happen once interest rates plateau (or eventually start to fall) and these people are ready to buy?
The demand will be so strong that it may even explode…BOOM!
So when would be the best time to buy a house? I’d say right now!
To your success,
Jules Dawson