A property investor’s ideal next move depends on the property they already own, according to PICA chairman Ben Kingsley.
The advice comes amid significant developments in the market, including the Coalition win in the national federal election, the Reserve Bank of Australia’s cash rate cut of 25 basis points, and the slowdown in house-price drops.
“If it is a unit in a complex of more than 30 apartments, generally speaking, I think this stock will underperform. Based on further research, this might be a sell, and I would not be buying this type of property in the current market,” Kingsley told Your Investment Property.
“As we move through the bottom of the cycle, existing houses and townhouses (with appropriate land content) are the types of assets that I would be looking to add to my shopping list at this time.”
Kingsley also expects property prices to record improvements over the next quarter.
CoreLogic reported that house prices across the nation dropped by 4% in May, making it the smallest month-on-month decline since May 2018.
According to CoreLogic’s Head of Research Cameron Kusher, the markets will likely bottom out in 2020, with overall drops of 20% in Sydney and Melbourne. Kingsley shares these views.
“In most markets, we are going to see a slowing in the rate of price falls, and some markets will actually experience some price growth,” he told Your Investment Property.
“I also anticipate the by the final quarter of the year, most house markets will experience some price growth, but a lot of unit markets will be flat or still experiencing some further falls due to oversupply issues.”
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