Breakdown of latest media coverage

The massive amount of adverse media has had an impact on the property market, however a bit like pre-election times when the market slows for no apparent reason, astute buyers are now looking to Gold Coast property offering exceptional value for both investors and those looking for seaside lifestyle change.

However, as we know media can have a huge impact on our confidence in the property market, so we’ve broken down some of the latest coverage and what this means for you and Gold Coast property.

Will the impending interest rate rise really affect buyers?

There is a lot of uncertainty sitting within the property market at the moment, heavily influenced by global factors that are playing a role in just about everything!

Along comes the Reserve Bank with their standard effort to control inflation by raising interest rates which of course has led to an increase in uncertainty within many buyers.

The method behind the madness

The Reserve Bank believes that if they were to increase interest rates, this in turn will reduce buyer demand and therefore property prices will fall. 

This is already having an immediate effect on markets such as Melbourne and most especially Sydney, however we are all aware how much continual growth there has been in these centres over many years.

Who will be impacted?

The pocket of buyers who will feel the largest impact by an interest rate rise is unfortunately First Home Buyers as this will heavily affect their purchasing power and may see them priced out of the market.  First Home Buyers who have already entered the market may also be affected if they are highly leveraged in new outer suburban areas. 

Note that First Home Buyers account for only one tenth of all homeowners. Despite the personal and social impact of such events, when they have occurred in the past, local markets have always bounced back into growth within a few months.

How should buyers respond?

While we initially experienced a natural knee jerk reaction from many buyers, pulling the hand break on a purchase to sit and wait out the 'uncertainty', here on the Gold Coast, we are already finding the astute buyers, while still wishing they had purchased two years ago are very much aware property is a long-term game, as they say, don't wait to buy, buy to wait. Indecision and pausing in this market will only cost you in the future. 

The Opportunity

As our market here on the Gold Coast currently offers exceptionally good value, most especially with new property as the sites were purchased in a previous market and building costs are expected to continue to rise, we suggest don't get caught up in all the media hype, if you understand your financial position, if you are borrowing and can comfortably absorb a slight interest rate rise and are ready to buy, NOW is your opportunity. Take advantage of a calm market and secure the right property at the right price.