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4 Reasons Why 2024 is the Prime Year for Property Acquisition


Could 2024 be the year for you to take a leap and invest in property?  

 

In this article, we delve into 4 compelling reasons why 2024 is indeed a great year for property investment. Here at The Newstead Group, we like to do things a little bit differently. While these reasons may help you better forecast the year ahead, we would also like to chat with you personally to help you understand the market trends and guide you toward the best financial options. Feel free to drop us a line to start discussing how you can seize this year and achieve your property goals. 


 

1. Beat FOMO  

On average, property prices have increased in Australia over the years. As such, it is no surprise that many individuals often question how much in savings they may have lost by renting rather than holding property. Though many may choose to wait and accumulate savings to buy their dream home the first time around, this is not always the most advantageous approach. Your first home does not, by any means, have to be the end goal, but rather a stepping stone to build equity and get you closer to your ideal property. Recent statistics have shown that the average Australian homebuyer will hold their home for up to 9.9 years (CoreLogic, 2023).  

 

In that same timeframe, property prices have grown exponentially. 

  

To iterate this further, take the iconic Brisbane Suburb of Ascot. If you were to have purchased a house in this suburb 9 years ago in 2015, it would have cost you approximately $1,255,000 (CoreLogic, 2024). Fast forward to now, and this same property would be worth, on average, $2,450,000. That is an enormous increase in property value of $1,195,000. This accumulated equity could then be put towards your next ideal property. By contrast, if you were to have rented a house in Ascot for 9 years from 2015, you would have spent approximately $354,539 (ask us how we calculated this – it was fun). 

  

Here at The Newstead Group, we understand that the prospect of purchasing a property can be overwhelming, especially with ever-changing market dynamics. We want you to take control of this year and avoid the FOMO, so let us assist you in demystifying the property purchasing process and help to secure the best financing options 

  


2. The 1st Home Buyers Guarantee Has Expanded  

In 2023, the eligibility parameters for the First Home Guarantee, Family Home Guarantee, and Regional First Home Buyer Guarantee underwent expansion, facilitating accelerated market entry for qualified buyers. As such, eligible individuals possessing a 5% deposit (or 2% for single parents or guardians) now have the potential to leverage these schemes for property acquisition, with no obligation to pay lenders mortgage insurance. If you are unsure whether you could be eligible for this scheme, feel free to contact us at any time and we would be happy to guide you through.   


The 1st Home Buyers Guarantee Overview
(Housing Australia, 2024)

3. Personalise your House into Your Dream Home

There are many advantages to owning a property, one being the ability to possibly add-value to your property through taking equity out of the property for renovations. Why not add a pool, renovate the kitchen or knock that darn wall down! Besides borrowing capacity & the value of your home, there is nothing stopping you from personalising the property into your dream home. In doing this, you could add significant value to your home; this equity could then be used to draw further equity, or even purchase your next investment, or upgrade!  

  

  

4. Offset Benefits

Owning a property can provide you with the opportunity to access offset accounts through specific lender products. Through keeping your savings in this account, you could be paying off your loan in a faster & more strategic method. In the long run, this could have a dramatic impact on either your retirement position, or the next property that you decide to live in. If you want to learn more about offset accounts and how they can benefit you, please take a moment to read on previous blog post by hitting the ‘Opting for Offset Accounts’ button below: 



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