A string of interest rate cuts and a stable economy may be some of the reasons why Australians are showing a renewed interest in the property market.
Recent figures from the Australian Investment Flows Index show increases in the volume of sales that are happening this year, while research from leading property groups is also pointing to resurgence.
"Importantly, current affordability has reached levels not seen since 2002. This situation has occurred as a result of a combination of interest rate cuts, property price reductions and the acceptance by vendors of more realistic prices," said Bernie Lewis CEO Stefan Lipkiewicz.
“There is also a growing feeling amongst the community that property prices may have bottomed and with potentially more interest rate cuts on the way, now may not be a bad time buy property."
And while this is largely good news for investors, a more competitive market can also present a number of difficulties for those who are looking to buy.
Anyone on the hunt for a new home loan will know that there is more to buying a house than transferring funds and signing on the dotted line.
You also have to be mindful of any changes to the national cash rate, as well as the impact that market forces can have on your mortgage repayments.
“It is critical to ensure that a comprehensive needs analysis is conducted and that all appropriate solutions are considered when finalising you debt strategy," added Mr Lipkiewicz.
Another important factor to consider is how the type of loan you eventually do select will impact on your lifestyle and the ability to action plans to expand your property portfolio in the future.
Along with the big banks, there are also a variety of different providers offering a range of tailored loans.
Non-bank lenders, building societies and credit unions are all growing in popularity among homebuyers and increasing the many mortgage options available to consumers.
With this in mind, it is not surprising that so many people turn to a mortgage advisor to help them sort through the finer details.
Lipkiewicz explains it as follows: "A professional qualified Adviser can consider many options, work through affordability, credit condition then develop a debt strategy that suits individual needs and finally select a product to meet those needs and the strategy.
"The market is currently flooded with products tailored to the circumstances of almost any individual, which makes competition for business fierce and client friendly, even more so as RBA cuts begin to filter down."
Rather than seeing the number of loans on the market as overwhelming, Mr Lipkiewicz says that if chosen correctly, the right loan can maximise savings and reduce the mortgage lifespan.
