Construction Boom Continues
Signing a contract of sale for a property gets you near the finish line but there's still a few more hurdles to jump. Congratulate yourself that you have made it through the most gruelling part of acquiring a new property, but don't crack open the bubbly until you have the keys in your hand.
Most of the work during the settlement period (i.e., the time between when contracts are exchanged and the settlement day) will be handled by the settlement agents (solicitor or conveyancer), while our role as your mortgage broker is to step you though the process and ensure it runs as smoothly as possible.
Record breaking housing construction is still underway according to research by BIS Shrapnel and Master Builders Australia.
The value of residential building work is forecasted to grow from $51 billion in 2013-14 to $68 billion in 2016-17, which will see the number of homes exceed 200,000 during this period.
Research shows the construction boom has been sparked by the extended period of low interest rates, which has encouraged builders and developers to address the pent up demand for housing. Home building has not kept pace with population growth for many years, translating to a deficiency of around 100,000 homes says researchers.
A growth in high-rise apartments has led the charge but the construction of detached houses is catching up.
If you're looking to buy a home or an investment property, the message is not to wait around. With interest rates sitting at historic lows and construction booming in many of our cities, there's a wide range of development sites to choose from, which increases your options for off the plan property to purchase.
Whether you are a beginner or a seasoned property investor, as your mortgage broker we would love to help you formulate a borrowing strategy to make the most of the current property climate.