To buy or to build? It’s the question most people in the housing market consider at some point, and a complicated one at that. The pandemic shook up both the housing market, and construction industry drastically. We saw home values skyrocket, building material costs increase, and wait times stretch out.
All eyes have been on the real estate market lately, as changes are anticipated, following the recent hike in the official interest rate. The RBA made the long awaited move to increase the rate to 0.35 per cent, an increase of 0.25 per cent in May, after two years of the lowest interest rates in history.
The expansion of the First Home Guarantee (formerly the First Home Loan Deposit Scheme) to 35,000 places a year could lead to more buyer demand in Melbourne’s sub-$600,000 market and get tenants into their first home sooner.
The latest release of the Australian Bureau of Statistics Residential Property Price Index has confirmed that the value of dwellings in the city jumped 20 per cent in the 12 months ending December 31. That compares to a national performance of 23.7 per cent.
Melbourne has certainly been a good place to invest in property in the last year - with the city experiencing 15.1% annual growth according to Core Logic. And banks and analysts are seeing continued if more subdued growth for 2022.
The bank of mum and dad (bomad) becomes one of the biggest lenders in the country. 2021 was the year we saw property values soar to record heights. It was also the year that the so-called Bank of Mum and Dad became one of the biggest lenders in the country.
