Spring Sydney property market is reasonably discerning: REINSW's Malcolm Gunning

Spring Sydney property market is reasonably discerning: REINSW's Malcolm Gunning
Spring Sydney property market is reasonably discerning: REINSW's Malcolm Gunning

GUEST OBSERVER

The Sydney property market is reasonably discerning. 

With the new APRA guidelines interest rates for investors are higher than for home buyers and already in most cases investors have a 20% deposit which means they have a buffer built in.

Some, particularly those with self managed super funds have hefty deposits.

It is also important to remember that only 30% of Australians actually have mortgages.

Real estate is also attractive as negative gearing creates affordability and there is tax effectiveness and income. First home buyers should not be waiting to enter the market at the right time. It is about buying when you can afford to buy.

If the market shortens rents go up and they are worse off. First home buyers should not be trying to speculate on the property market because you don’t make money in real estate in the short term. Real estate has a seven year cycle so there is no real right or wrong time to buy or sell.

It is not like playing the share market, it has a much longer cycle.

Malcolm Gunning is president of the Real Estate Institute of New South Wales and can be contacted here.

Tags: 
Investment Property market

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