Want to take advantage of the current buyers market? How accessible is your equity?

Jamie Moore

We were asked by the team from Steve McKnight’s www.propertyinvesting.com  website to provide some comments on the current state of the market. The article is below.


The general consensus in the Pass Go office is that the property markets across most major Australian cities remain stagnate which is providing some excellent opportunities for investors.


The demand in the low to mid price range in the Sydney market, particularly out west, has softened which could be due to the removal of the First Home Owners Grant for established dwellings.  


In Canberra, it’s a good time for those looking to upgrade with the market for homes above $600k attracting less competition than properties at the lower end of the market.  We are seeing quite a few clients who purchased their first home a number of years back use the equity they’ve built up in their first property to upgrade into a larger dwelling or move closer to the CBD.


A tightening in the rental market and a lower level of stock is bringing optimism back to the Perth market while in Adelaide the property market continues to look bleak with an excess level of properties and a lack of optimism from buyers.


In Brisbane, there looks to be a slight upswing occurring, while the Melbourne market seems to remain flat with supply outstripping demand, particularly where new developments are concerned.


The good news is that the current outlook of most capital city markets means that there are some excellent buying opportunities for investors.


For those serious about investing and who have some equity up their sleeve it’s a good idea to access this equity now rather than waiting until you’ve had an offer accepted on a property.


First and foremost, if a good deal presents itself you want to be in a position to act quickly. Having already accessed the equity to fund the deposit usually means a quicker finance approval time because most of the hard work has already been done. Being able to offer the vendor a shorter timeframe to get your finances approved can also be a great negotiating tactic.


Additionally, it can take anywhere up to four to eight weeks for the equity release to be complete – sooner if it’s an internal refinance with your current lender but longer if it’s a refinance to another lender.


From time to time, a lender’s policy may change. Your current lender may not have an issue with you accessing equity today but tomorrow their policy could suddenly be less conducive to your needs.


And finally, if set up correctly, you can have the funds sitting dormant with no interest to repay until you actually start to use them.


For proactive investors who always have an eye out for their next property, having easy access to equity is a must – particularly in a market that’s ripe for buyers.


Jamie Moore


Pass Go Home Loans Pty Ltd


Canberra, Australia


info@passgo.com.au | www.passgo.com.au | 1300 656 299