RBA announces fifth interest rate hike this year – lifting cash rate to an 18-year high of 4.85 per cent.

While this rate rise will further soften the market, for the right buyer it has created some of the best opportunities we’ve seen in years, according to Tate Brownlee.

“The interest rate hikes, combined with recent changes to negative gearing and capital gains tax, have created greater caution and prices have eased as a result,” Mr Brownlee said.

“This softer market isn’t a bad market. It’s a market that rewards people who move with a plan.

“We are now seeing opportunities for investors, upgraders, downsizers and first home buyers.”

Investors:

With prices easing and rents holding firm, gross yields as high as 6 per cent are now on the table – numbers that make investing stack up again. There’s also a strong play in properties with potential for a second dwelling, subdividing, or adding a granny flat – and new builds keep access to negative gearing under the budget changes.

Upgraders – The price band has dropped

This is where we’ve seen the biggest shift. The next home up is more affordable than it was a year ago, and a lower purchase price means less stamp duty. The gap between what you sell for and what you buy has narrowed in your favour.

Downsizers – Choice is on your side

More stock and less urgency means you can take your time and find the right place, not just the available one. A lower buy-in also means lower changeover costs, leaving more of your equity in your pocket.

First Home Buyers – A better starting point

The market has settled to a more attractive base. A lower buy-in price means a smaller mortgage from day one. There may not be a better time to get your foot in the door.

“We’re still seeing strong demand from lifestyle buyers across the Northern Rivers and Southern Gold Coast. This part of the market keeps proving less sensitive to interest rates than the cities, because people buying here are choosing a lifestyle, not just a house,” Mr Brownlee said.

Want more information on the current market?

Tune in: The Tate Brownlee Real Estate Podcast streams every Wednesday at 5pm with local market insights and conversations with business leaders across the region. Follow the link below:

Tate Brownlee Podcast

Let’s talk about your move: Whether you’re buying your first home, stepping up, scaling down or building a portfolio, the opportunities in the market are specific to your situation. Call Tate directly or drop into either the Banora Point or Casuarina office and Tate will show you exactly where the numbers are for you.