BY BYRON FREEBORN, RAINE & HORNE WYNNUM
As we round off the calendar year and lean into 2024, let’s take look back at the year’s highlights and some of the trends that influenced some of the purchasing decisions throughout the year.
We’ve seen a selection of people purchase their first homes, upgrade from their current home, relocate from either inter-state or from other parts of the state, all the while getting familiar with their new surroundings; joining groups or clubs, visiting the cafes and restaurants, which has helped our food/entertainment scene develop.
A shift this year has been an increasing familiarity with higher interest rates and the required adjustments to budgeting and lifestyle choices. There had been a shift to some extent of the type of dwelling being purchased, from an entry-level house to a townhouse, a house with a water view to one that doesn’t (but is still walking distance to the esplanade), or from a modern/renovated home to one that’s fit for purpose, with renovation will plans for the future. Properties with bay views have still been in great demand – the budget is there, and the desire. There has also been the geographical adjustment – from Manly to Manly West, or Wynnum to Yarrabilba – particularly with the additional enticement of the increase in first home buyers’ grants.
Decisions have been pending from some of the potential investment crew, certainly not all, but as most property owners have seen a gain in the value of their home, paid down the loan and now have a reasonable level of equity, so the next step is to convert the home to an investment. This prompts the question: do you wait for interest rates to cool off before you purchase and lock in the interest rate? The conundrum there is, while we wait for interest rates to (possibly) come down, is the property of interest likely to grow in value, stripping any possible savings from a lower interest rate?
As for the number of potential buyers in the market, the energy is good, partly due to an increase in values since the 2021 bull run, with little pullback in demand and enthusiasm in early/mid-2022. Purchasing a property is a personal event, and a financially significant one at that. If you’re ready to buy, you’ve done your homework, and you’re staying within your budget, it’s time to move forward.
