Mark Bouris joined Channel Nine’s Today Extra to discuss the burning questions on the minds of first home buyers and investors.

Australians are experiencing the largest hike in interest rates for two decades, and it has many who are on the lookout for affordable property starting to wonder when the right time to buy will be.

Sydney and Melbourne are experiencing large numbers of people moving interstate to get out of expensive markets. Mark Bouris believes this makes areas such as South East Queensland extremely attractive for property investors. 

“We are seeing not so much price rises [in places like Queensland], but we are seeing zero vacancy rates for renters.”

“That tells me that if you’re an investor, and you’re looking to make sure that you get a tenant, then one of the places you should consider buying right now is a place like Queensland or Southeast Queensland.”

Many Australians are moving out of the capital cities and turning to regional areas and Mark believes that this interstate and intrastate migration is contributing to property price increases in areas like Wagga Wagga, which saw prices increase by 18% in the last financial year. 

Mark said, “Property prices are a function of a couple of things: it’s a function of population growth, it’s a function of scarcity and it’s a function of time.”

“Places like Wagga, Ballina, Lismore, lots of regional areas around Australia have had a net migration towards those areas. So migration into regional areas across Australia went up 16% last year, and in the last quarter alone of this year, they’ve gone up another 9%.”

“So I would expect regional areas to fare better than metropolitan areas when it comes to the price changes as a result of these interest rate rises.”

Where to find a bargain

This is a particularly important question for first home buyers who are struggling more than ever to afford their first home in major cities across Australia. Unfortunately, Mark believes that now is not the time for bargain hunters:

“I always say if you’ve got a loan approved and if you’ve got the deposit then go and buy the property, especially if you fall in love with something. But equally… now is not the time to seek a bargain.” 

Mark said you might be able to find a great deal in unique areas, and you should definitely continue searching, but generally speaking, “the bargains are going to come out towards the end of this calendar year around Christmas time, January and February. Unfortunately, we are probably going to see another three rate rises between now and that date.”

It’s an uncertain time for many and with predictions for further rate rises, Mark was asked to give his advice to Australians who are worried about further months of rising interest rates:

“Don’t panic. And just go back and review your budget, make sure that you’re in a position to reduce discretionary spending where you can. Whatever you do, don’t panic and sell your property, don’t panic and go into default. Just peel back your cost of living wherever you can.”

View Mark’s full interview on the Today Extra, in the video above.

If you’re worried about your current home loan or your repayments increasing, there may be a better deal out there for you and refinancing might be an option for you to fight against rising interest rates. Our experienced YBR Home Loans mortgage brokers know exactly the right questions to ask you and how to shop around for the best deal out there. Engaging our brokers to help you during these uncertain times costs you nothing! So reach out to us today to start a conversation on your next steps.

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