The prospect is great for property in 2020! Whether you're a first home buyer, seasoned investor or moving homes, nonetheless, property is sure to be paying great dividends in 2020!
With huge incentives for first home buyers, especially in the regional areas of Victoria and NSW, there has never been as much government stimulus and grants available as there is right now since right before the start of the last property boom!
If you can see past all of the events currently shaking up the world economy, you will soon agree that in a few years time, there would have never been a better time to enter the property market as it is right now!
I do believe that the interest rate will drop further, as the government makes attempt to stimulate the economy further reducing borrowing costs and providing incentives of all sorts.
In 2019 I do think we saw a bottoming out of property prices and a subsequent improvement in the market by years end.
The Fear of Missing Out.
People are looking for alternatives in the investment world. As more and more jobs in retail are lost, these incomes will need to be replaced to feed a family one way or another! So yet again, property may become their solution? There aren't too many asset classes that weigh up with property, in fact, there are probably none!
Leveraging to 80% (even more than 90% with LMI, so take it if it's available and means you can get in to the market sooner!) leads to greater tax incentives (or so we are told). Moreover, now potentially the biggest and baddest reason, the prospect of negative bank interest rates which are becoming more a reality with every first Tuesday of the month RBA meeting! My tip is for a March interest rate cut.
Growing up we knew cash as king and a 'safe haven' asset, like gold for example. Except nowadays there is lots of cash as the Reserve Bank of Australia prints some more money and inflation takes into effect. The buying powers of your Australian Dollar is losing more value as more of this dollar gets printed and available in circulation. Hence, this inflation of the economy is also becoming a reality i.e. assets will appreciate in value.
Consequently, everything will become more expensive, and this won't just be limited to property. Other asset classes and expenses and the cost of living too will increase. I say, if they're printing it, then why are we saving it?