2013 will be remembered as the year the Australian property market was revived from a tough previous 3 years.
The revival can be attributed to multiple factors, including interest rates which have been the lowest in my 16 years with BMT, the increase in Self Managed Super Fund and foreign investor activity amongst others.
All this made for an interesting year that saw many commentators speculating on the nature of the market with talk of bubbles, busts and a heated market. There are also many believing that it is simply a correction which will continue into 2014 with only a few specific markets experiencing boom house price increases.
While it has been said that first home buyers are being priced out of the housing market by property investors, the biggest obstacle may be the failure for first homebuyers to actually save for a deposit.
Instead of saving for a deposit for a home, some young people are looking to enter into the market by firstly purchasing an investment property. This might be the ideal way for some to get their start in the property market. Buying an investment property where they can afford, but renting where they want to live but can’t yet afford to buy.
2013 has been quite a rewarding year for BMT, every day we have more organisations aligning themselves with us and making the most out of our first class property depreciation schedule and service. To all our clients, investors, Accountant partners and property professionals, on behalf of the whole BMT team around Australia, I want to thank you for your support. We look forward to working with you again in 2014 and wish you all a Merry Christmas and a happy and prosperous new year.