Happy New Year

O'Neill Street, Lilyfield

O’Neill Street, Lilyfield

Another year over and a new one begins. I hope 2015 is a good year for you and your loved ones.
After an amazing 24 months of growth in Sydney the talk is the market will slow down in the year ahead but is likely to continue to grow, albeit at a slower pace.

The year 2015
We are still in the upward cycle, according to many experts, just not at the same pace, as is to be expected after such massive growth. There may well be months where the median price will go up and down subject to consumer confidence, market changes, interest rate movements and economic factors.
Driving growth in 2015
Underpinning Australia’s property growth and prices is the housing shortage and population growth. Interest rates look set to stay as they are at least for now with many saying that the fall in petrol prices is equivalent to an interest rate cut.
There have been a number of new apartments being built and the demand is there, at least for now. New products generally mean new price levels. The prestige market will continue to be stimulated as the big end of town agrees big bonuses.
Cash and term deposits are deemed unattractive with share market loses and memories of the GFC being still in people’s minds. The property boom is a fresh reminder of the power of capital growth.
Rents are expected to continue to rise and while interest rates are low, investors have the opportunity to get into the market at close to neutral gearing. The chance to pay off borrowings in the early days is certainly appealing.
If you are looking to cash in on the growth over the past 24 months, now may be the time to do it. If you have been wondering where your property value sits, please give me a call on 0417 972 420.

Gerard McCarthy

McCarthy Estate Agents

1/695 Darling Street,

Rozelle NSW 2039

Tel: (02) 9818 8225


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