AS INVESTORS slow, property prices continue to decline and buyers feel the pinch of lending policy restrictions, experts say it’s a market perfect for equity-holders to get another piece of the Sydney property pie.

CoreLogic Australia Head of Research Cameron Kusher said the recent slowing of the rate of decline in median house prices brought a shift in the market and created an opportune time for those who can, to strike.

In December 2017 and January 2018, Sydney dwelling values fell at a monthly rate of 0.9 per cent, reducing to 0.6 per cent in February and 0.3 per cent in March, with early April figures further supporting the trend that the steepness was beginning to plateau.

“It looks like the rate of decline is slowing which is spurred on by a few factors: an increase in people moving from Sydney interstate to Queensland and Victoria, we’ve still got lending restrictions…and an awful lot of stock on the market,” Mr Kusher said.

While not ideal for those looking to sell, it’s finally flipped in favour of the buyer – especially those looking to purchase a second or third property.

“It’s been a sellers’ market for the past five or six years and has only just changed, so while we have these factors in place, it will remain a buyers’ market,” Mr Kusher said.

CEO of finance company Savvy Bill Tsouvalas said the stars had aligned for those with built-up equity in their homes who were looking to invest.

“The Sydney property market has definitely pulled back and there are a lot of people who have a fair bit of equity built up in their homes over the past 10-15 years because of the booming Sydney market,” Mr Tsouvalas said.

Combined with historically low interest rates, he said the time was right to look to refinance your current home loan and look at purchasing an investment property, if able to do so.

“Interest rates are very unpredictable. We’re in a relatively strong economic environment and have been for the past few years which is why I am surprised the interest rates haven’t gone back up already,” Mr Tsouvalas said.

“Whether it be next quarter or the quarter after, interest rates have to go back up some time soon.”

Following the introduction of lending restrictions in March last year which put a cap on interest-only mortgages, and investor housing credits which took a hit in 2014, the market competition has thinned, opening the gates wider for equity-holders to strike.

Mr Tsouvalas said the combination of factors meant there was no better time to refinance your mortgage to ensure you made most of the market conditions on every level.

“Refinancing your home loan now will lock you into a good interest rate which means more money to spend on the next mortgage,” he said.

This combination of lower property prices, built-up equity, tightened lending restrictions and low interest rates leaves it open for investors in the right financial position to think about refinancing their current mortgage and look for new opportunities.

Source:

https://www.dailytelegraph.com.au/feature/special-features/time-to-buy-in-sydney-property-market-experts-say/news-story/13749764a2518a06369e3b96c4383ee3