Population boosts housing

Affordability helps Queensland buck the trend

QUEENSLAND home owners have reason to be a little more optimistic about the state’s housing sector, despite a slowing national market.

While valuations across the nation have been impacted by increased supply and reduced demand from investors, the current slowdown is being felt most in the southern states.

For Queensland, the surge in New South Wales and Victorian house prices in recent years has created an affordability advantage that is boosting the state’s population and helping to address areas of oversupply. According to the ABS findings, interstate migration to Queensland is running at more than 20,000 people per annum – a very positive development for the state.

The Brisbane apartment market is one area that has experienced modest price falls over the past 12 months, assisting affordability for first home buyers.

More broadly, low interest rates, strong job growth and solid population growth are all still supportive for housing.

For prospective home owners, while it’s a good idea to be across property market trends, remember to always consider your personal circumstances above all else.

Focus on saving a solid deposit. First home buyers can now take advantage of several first home buyer schemes to help with this. Use online calculators to understand what your mortgage repayments would be and how it will impact your budget and lifestyle.

The property market will always cycle through peaks and troughs, so it’s important to treat home ownership as a long-term investment.

Home buyers can take advantage of current low interest rates, but ensure you can continue to make repayments if your situation changes.

Do your research and check the median house prices in the areas you’re looking to buy.

For first home buyers, you may need to buy outside the city, so check what facilities are in the area that help make it an attractive investment. For example, proximity to public transport, schools or higher education, and projected infrastructure projects that are in the pipeline.

You may also like to look at the demographics and population growth to understand future demand in the area.

Doing a little bit of additional research can give you confidence your next property purchase is a solid investment, regardless of market conditions.

‘‘ HOME BUYERS CAN TAKE ADVANTAGE OF CURRENT LOW INTEREST RATES, BUT ENSURE YOU CAN CONTINUE TO MAKE REPAYMENTS IF YOUR SITUATION CHANGES.