According to the Investors Club the average house price of a Sydney home could rise by $100,000 in the next two years. That could make buying a home a great investment with mortgage interest rates as they are now.
They claim that a shortage of homes and a growth in population will cause Sydney house prices to rise.
The last spike in Sydney property prices occurred between 2002 and 2004 when the median house price surged by over $150,000 to $524,000 because of under-supply.
The spike in property prices according to the Invest Club was caused by an under-supply of houses relative to population growth which resulted in a major blowout in prices over this two year period.
But is this true, and was there other factors at play?
I believe that the other factors, including the flow on from the first home owners grant, and the “last echo effect” of the baby boomers, coupled with the improved longevity of Australians was the real causes of the 2002. to 2003 rises, which mirrored the 1972 to 1975 rises of home prices, which I believe was driven by the baby boomers coming to an age when they wanted to start a family.
Maybe it is Sydney’s turn for a price rise. But let’s see the evidence of an upturn, before we start rushing out to buy an investment property.
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About: Rick: Rick Adlam has been involved in mortgage finance since 1996 with Equity Home Loans as a Founding Partner. Rick created Mr Mortgage™ in 1999, one of Australia's first online mortgage brokers. As a mortgage introducer Rick specializes in helping his clients get approved for low interest mortgage loans with no ongoing fees and charges, and low doc home loans for the self employed.
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About the Author
Rick Adlam Has Written 139 Articles For Us!
Rick Adlam has been involved in mortgage finance since 1996 with Equity Home Loans as a Founding Partner. Rick created Mr Mortgage™ in 1999, one of Australia's first online mortgage brokers. As a mortgage introducer Rick specializes in helping his clients get approved for low interest mortgage loans with no ongoing fees and charges, and low doc home loans for the self employed.
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Tags: Buying A Home, First Home Owners, first home owners grant, Mortgage Interest Rates
