By Damian Will, Sales & Marketing Manager, Novus Group
The latest ANZ/Property Council Survey shows that industry confidence has picked up by 13 index points, reversing a year of decline.
Industry confidence improved across all states and territories, with WA being among the top performers.
“This strong sentiment bounce is driven by some welcome post-election policy certainty out of Canberra and will be an encouraging sign for the RBA and national policy makers,” said Ken Morrison, Chief Executive of the Property Council of Australia.
ANZ’s Head of Australian Economics, David Plank commented, "Over the past month lower interest rates, the proposed change to the interest rate floor by the regulator, and the removal of uncertainty around the impact of the possible tax policy changes have boosted sentiment toward housing."
SERVICEABILITY RATES REDUCED
Regulators and lenders are juggling different lending criteria in a bid to stimulate sluggish property lending.
Lenders are combining different mixes of regulators' new serviceability rates, buffer rates and amendments to the household expenditure measures with the Reserve Bank of Australia’s cut to cash rates.
Last week Westpac cut its "floor", or serviceability, rate from 7.25 per cent to 5.75 per cent with ANZ cutting their rate to 5.5 per cent and 2.5 per cent respectively the week prior.
Put simply, finance is now more accessible to property investors working on tight margins.
SO, IS IT FINALLY TIME TO ACT?
As I said in our last newsletter, your ability to monitor the market sentiment and take action when the time is right can make a big difference to your ROI.
There are a lot of positive signs and in my opinion it is certainly time to start weighing up the opportunities available to you, doing the research and looking at the numbers in detail.
If you would like some help assessing or finding a property to develop, give us a call on (08) 9240 6020 or Get in touch via email today!