As we step into 2024, the team at homeloanexperts.com.au is thrilled to share exclusive insights from our property experts and mortgage brokers regarding the property market. In this blog post, we present their takes on emerging trends, challenges and opportunities for buyers, and actionable steps. It’s time to make 2024 your year in the property market.

The Market Will Be Busier

Government Schemes On The Forefront

The year 2024 will be a busy market, with stable interest rates and easing inflation contributing to high rents. Government initiatives, such as new tax rates and the Help to Buy scheme, are expected to shape the market.

Rising Prices And Rents

Property prices and rents are set to continue to grow due to stable borrowing conditions. A constant lack of rental properties is expected to push rents higher, while construction struggles, including labour shortages and high costs hinder property supply.

Construction Challenges On The Horizon

Specific regions, like Queensland, are deploying incentives like the First Home Owner Grant to spur construction, potentially leading to an uptick in housing development; however, labour shortages and high costs will still threaten to slow construction activity. Calls for adjustments in policies, like stamp-duty concessions, further reflect the efforts to stimulate market activity.

Regional Variances Expected

Investors will turn their attention to smaller capital cities in 2024. Brisbane and Perth are expected to perform particularly well. Adelaide may experience a slowdown, with Melbourne and Sydney facing declines as well.

Interest Rates Stability In 2024

With improving inflation, experts predict stability in interest rates for the first six months of 2024. There is also a chance of a rate cut by the end of the year. For now, however, the possibility of a rate hike lingers, especially if inflation targets aren’t met. This could affect borrowing power but also presents a strategic window for those with solid borrowing capacities to consider entering the market before any potential rate changes introduce more competition and drive up prices.

Investor Trends In 2024

Investor trends are changing, heading in two different directions:

• Regional Focus: Many investors are increasingly drawn to regional areas, where property prices are more affordable. They recognise the potential for value appreciation in these untapped markets, making it a compelling investment option.
• Tax-Driven Investments: Some investors will remain willing to invest at higher rates for the tax advantages it offers. Property remains a favoured avenue for wealth accumulation.
Borderless Investing And Build-To-Rent Developments On The Rise In addition to these shifts, another trend emerging in 2024 is borderless investing. Investors are now exploring opportunities beyond their immediate geographic boundaries, focusing on the West Coast at present. Factors such as affordability and the promise of higher rental yields are driving this trend. Furthermore, the rise of build-to-rent developments is also reshaping investment strategies. These developments offer a more stable income stream for investors in the long term, potentially altering the traditional approach to property investment. As the market evolves, investors will adapt their strategies to leverage these emerging trends and opportunities.

Challenges For First-Home Buyers In 2024

First-home buyers are up against high property prices and stringent lending criteria in 2024. But every challenge has its bright side. Our experts have put together tips to turn these obstacles into opportunities for owning a home. Check the table below to see how you can use the obstacles to your advantage:

Challenges	Opportunities
Serviceability and high costs in capital cities	The emerging appeal of cities like Brisbane, Perth, and Adelaide, due to their relatively low property prices, presents an opportunity for first-home buyers to make their property ownership dreams a reality.
High house prices	The scheduled tax cuts in July could provide aspiring homeowners with more financial capacity to secure a property.
High assessment rates affecting borrowing power	There are government schemes like stamp-duty waivers and the First Home Guarantee that offer an opportunity for aspiring homeowners. These schemes often require a 5% deposit, along with additional costs like setup fees, conveyancer fees, and mortgage registration fees.
Property affordability and location challenges	Seeking pre-approval and consulting with a mortgage broker can help first-home buyers make informed decisions.
Buffer rate considerations	Some banks are considering reducing buffer rate from 3% to 2%. This change could improve the borrowing power of first-home buyers.

Secret Tips For Buying Your Home In 2024

• If you have sufficient borrowing power and are in a position to buy, consider taking action now. Waiting for rates to decline may result in increased competition.
• If you are not ready to buy yet, continue diligently saving and managing your expenses, as every bit counts towards your financial goals.
• Explore emerging property markets like Brisbane, Perth, and Adelaide. These regions may offer opportunities that align with your requirements.
• Consider older properties, such as older units, where there might be room for negotiation and potential bargains.
• It’s essential to make a clear decision between pursuing yield or growth as an investor.
• Research market trends, review your finances, and stay updated on changes in interest rates and deposit requirements.
• Having a pre-approval ready is vital for a timely property purchase, ensuring you’re prepared to make the move when the right opportunity arises.
• Engage a mortgage broker to sort your finances before you start property hunting. This proactive approach can help you avoid disappointment and streamline the buying process.

Looking To Buy A Property?

Don’t start your property search without engaging a mortgage broker to sort your finances. It’s an important step, and you want to ensure everything goes smoothly. We care about your success and are passionate about assisting you. Our dedicated mortgage brokers are here for you. To get started, simply reach out to us by calling 1300 889 743 or completing our free online assessment form.