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4 Reasons to Buy in a Cooling Property Market

4 Reasons to Buy in a Cooling Property Market

4 Reasons to Buy in a Cooling Property Market

A cooling property market is a great opportunity for those looking to purchase, while slower house price growth and lower demand marks a challenge for many property investors. With the cash rate increasing each month and property prices fluctuating,investors now have more purchase options available to them.

For starters, there may be greater room to negotiate with the seller when it comes to pricing, while the increase in properties on the market can provide more selection for buyers. Additionally, buyers may have more choice when it comes to selecting compatible lenders as some lenders might compete against one another for customers in a slowing market. Finally, with house prices no longer skyrocketing across Australia, buyers now have more time to consider their purchase options than had been previously possible in a booming market. All these factors make buying in a cooling property market attractive for savvy investors.

Despite RBA policies leading to a cooling of larger metropolitan markets, there are still a variety of positive purchase options out there not only for individuals but also through a growing number of professional property investment strategies.

Four specific reasons to buy in this environment include potentially lower entry costs, increased negotiating power when it comes to both cost and terms, greater opportunity for growth due to decreased competition among other buyers, and potential inflation is going down so we are experiencing market downturns. 

1. Smaller Lenders are Competing for Better Deals

These smaller online lenders are taking advantage of new technology and cost-saving strategies to provide financial solutions to customers. With convenient online digital services and easily accessible customer support, these smaller lenders can provide more flexible and attractive loan packages than ever before. Not only that, but the competition between small and large lenders is creating a market that offers more variety with better rates. Whether you’re looking for a mortgage or a personal loan, there’s no doubt that tapping into this burgeoning field could score you some great deals.

2. Potentially lower entry cost

In recent months, the competition in the property market has passed through a dramatic shift. With less people buying or renting, there are more available properties and much lower prices than they were previously. Low competition means fewer people will be interested in the same property making it easier to get a great deal on houses, apartments, etc. Having said that, it’s still important to research available options thoroughly and make educated decisions when investing in real estate to ensure future returns and success. All eyes are on the market – waiting for a resurgence and investment opportunities picking up speed again – so now is the time to make smart moves.

3. What to consider now that inflation is going down

The RBA states that they will drop interest rates when inflation is going down, it’s a great time to start exploring options and making investments. With opportunities abounding, there’s no better time than now to make sound investments you can benefit from later. Before investing, take the time to do some research into your desired location, local market values, and long-term projections of returns. You may also want to particularly consider items like whether the property requires renovations.
Keep in mind that while investing during times of low inflation can mean lower costs now, there also runs a risk of lower return rates down the line when prices begin to get back up. To make sure you maximise your potential profits, talk  with an experienced real estate agent or financial advisor if needed.
We are launching an innovative real estate opportunity Australia wide which is designed to help people to buy, and sell properties traditionally and also fractionally. At our upcoming event, we will discuss how we can help improve affordability, reduce mortgage stress, create more income through helping property owners, builders, developers to sell their property fractionally.  We have several ways this can be done and supported. 
If you are a real estate agent, a property developer or a builder and would like to learn more about property tokenisation, and selling property fractionally then come along to our event to learn more.
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