And just like that a new year is upon us. For most people, this is a time to reflect and select aspirations for the year, but sticking to them isn't always easy. By setting realistic expectations, you are more likely to see your resolutions through. To do that, consider how you can continue to build upon your successes from 2015.
Here’s a quick wrap-up of 2015 and what’s expected to come this year.
Looking back on 2015
There’s rarely a dull moment in the finance industry and 2015 was no exception to this. The cash rate sat at just 2% for the majority of the year, which prompted a number of buyers to purchase their first home or refinance their mortgage. Month after month, the figures for owner-occupied housing commitments continued to rise. Investors, on the other hand, were subject to a change in APRA regulation, which led to the biggest fall in investment lending in seven years.
Low variable interest rates saw applications for fixed-rate mortgages drop to a four-year low in October, but demand bounced back after many lenders lifted interest rates independently of the Reserve Bank of Australia (RBA). The RBA highlighted strong economic conditions in its final statement for the year, as well as reduced growth in the Sydney and Melbourne markets.
A busy market and high buyer demand resulted in all-time high auction rates in 2015. According to figures from CoreLogic RP Data, it was the busiest year on record for auctions, with more than 100,000 auctions taking place across the country – up by 20,000 from 2013. Brisbane was tipped to be the market to watch and while prices didn’t spike as expected, the city is attracting a lot of attention from investors.
Looking ahead to 2016
The RBA Board does not meet again until February, so homeowners can continue to enjoy low rates for the time being. In terms of the Brisbane market, it is expected to enjoy moderate growth. As prices continue to rise in Sydney and Melbourne, Brisbane is becoming more attractive for buyers and investors alike. Major infrastructure announcements such as the Queen’s Wharf development have also been good news for the city and it is hoped investment in the city will continue this year.
Planning your year
Interest rates and property prices are always fluctuating, meaning there is never a perfect time to purchase or sell property. If buying a home or investment property is on your list of goals for 2016, now is the time to start doing the legwork. Even if you aren’t ready to purchase just yet, you can set your budget and start researching property types and suburbs that appeal to you. By establishing goals and getting organised, you’ll be in the best position to act when the perfect property does eventually come up.
Ready to make your New Year resolutions? Here’s more information to help get you started.
Resolution 1: I want to survive the first year of my mortgage
Resolution 2: I am ready to purchase an investment property
Resolution 3: I want to refinance my mortgage
Resolution 4: I would like to start a self-managed super fund
Resolution 5: I need to decide whether to renovate or sell my property
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