What Is The Future of Australia’s Housing Market?

As we close the books on the financial year 2024, it’s time to reflect on the property market’s past and plan for the future. At Atelier Wealth, we’re committed to helping property investors navigate this evolving landscape. Here’s a comprehensive guide on what’s next for the Australian property market, focusing on the latest trends, strategies, and predictions.

The end of the financial year (EOFY) is a crucial period for property investors. It’s a time to assess our financial performance, review our investment portfolios, and set new goals. Reflecting on the past year’s achievements and challenges provides valuable insights that can guide our future decisions. At Atelier Wealth, we emphasise the importance of taking stock during this time to ensure we are on the right path to achieving our investment objectives.

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What’s New in the Lending Industry

The Australian property market is constantly evolving, and the past year has been a testament to that. With rising interest rates, lenders are adapting their policies, and new investor strategies are emerging. Here at Atelier Wealth, we stay on top of these trends to ensure our clients have the knowledge and resources they need to make informed property investment decisions. 

  • Investor Market Heats Up: Major lenders like CBA and ANZ are re-entering the 95% LVR space for investors, indicating confidence in the market.
  • Good News for Self-Employed Borrowers: Lenders are now considering borrowers with a 6-month ABN registration and consistent income, opening doors for more self-employed individuals.
  • Offset Accounts: A Self-Employed Investor’s Ally: Offset accounts can help self-employed investors save on interest and potentially pay off loans faster, boosting financial stability and long-term goals.
  • Innovative SMSF Strategies: Explore investing with two SMSFs as tenants in common, but seek professional advice before considering this or other complex SMSF strategies like high-risk 90% LVR loans.

The Growing Gap in the Property Market

Understanding Market Disparities

The Australian property market is experiencing a widening gap between high-demand areas and more affordable regions. Factors such as population growth, infrastructure development, and economic conditions drive this disparity.

Exploring Regional Opportunities

As property prices in major cities continue to rise, regional areas are becoming increasingly attractive to both investors and homebuyers. These regions often offer strong growth potential and more affordable entry points. Investors are advised to consider regional markets as part of their diversified investment strategy.

How Do I Find a Money Mentor?

The Role of Financial Mentor

Financial mentors can play a vital role in guiding investment decisions. Many investors find value in following money mentors like Dave Ramsey or Scott Pape, the Barefoot Investor. These mentors provide valuable lessons that can be applied to personal financial strategies.

Developing a Personalised Approach

One key takeaway is the importance of developing a personalised approach to money management. By taking insights from various mentors and adapting them to your unique situation, you can create a system that works best for you and your investment goals. This tailored approach ensures that your financial strategy aligns with your specific needs and objectives.

What are the expectations for the property market in 2024?

Anticipating Continued Growth

Looking ahead, the property market is expected to continue its growth, particularly in high-demand areas. The potential for interest rate changes could also impact property values and investment strategies.

The Challenge of Affordability

Finding affordable properties is becoming increasingly difficult for investors. As demand continues to rise, especially in regional markets, pre-approval amounts that were sufficient at the beginning of the year may no longer be adequate. Investors are advised to be proactive in securing financing and exploring different market opportunities to stay ahead.

As we move into the second half of 2024, staying informed and adaptable is essential in the ever-changing property market. It’s crucial to take stock of your financial goals, seek professional advice, and continue learning from industry experts. The key to success in property investment lies in strategic planning, informed decision-making, and a willingness to adapt to new market conditions.

At Atelier Wealth, we’re committed to providing valuable insights and practical advice to help investors navigate the complexities of the property market. If you’re planning to invest in property this year, now is the perfect time to take action. The property market is moving with or without you—let’s make sure you’re on board.