When is the perfect time to buy property? It was yesterday!
For those investors waiting for the “perfect” moment to jump into the property market, we have bad news: it was yesterday. The good news? Today remains exceptionally good. Here’s why buying now —rather than six months (or one year) from now— could translate into a stronger portfolio and healthier returns.
1. An instant $20,000+ boost to borrowing capacity
The Reserve Bank has just lowered the cash rate by 25 basis points to 3.85 %. The RBA’s latest cut instantly boosts the amount banks will lend. Put simply, investors can now afford a home that was out of reach only weeks ago—without spending a cent more on repayments.
2. Melbourne is still a bargain
Melbourne’s median dwelling price sits below Sydney, Brisbane, Adelaide, Perth and Canberra. For investors, Melbourne offers capital‑city fundamentals at a regional price tag.
3. Affordability + more borrowing capacity = prices go up
History is clear: when affordability is still reasonable and borrowing limits jump, prices follow. Investors that secure stock early in the upswing typically enjoy high capital gains.
4. More rate cuts are coming (and everyone knows it)
Economists are tipping additional cash rates reductions later this year. With every reduction more buyers will join the market, which means more demand and higher sale prices.
Are your clients waiting interest rates to actually be lower? By the time they are, sellers will know it—and price higher.
5. Investors: lock today’s price, settle on tomorrow’s rate
Long settlement projects are a strategic fit. Investors lock in the current lower price now, watch the value grow while the property is being built, and borrow the money later—when interest rates (and repayments) should be smaller.
The latest rate cut has boosted investors borrowing power while Melbourne property remains undervalued and ready for growth; with further easing of interest rates on the horizon, every month property investors delay invites more competition and higher prices. Acting now will help buyers to secure today’s lower purchase price, benefit from imminent capital gains, and finance the deal on tomorrow’s cheaper money—positioning their portfolio ahead of the next wave of buyers.
