House price fall
If you thought last year was a tumultuous year for Australian property prices, then wait and see what experts are predicting in 2019. According to a leading credit rating agency, Australia will see the biggest house price fall in the world this year. Fitch Ratings predicts that the Australian house prices will fall a further 5 percent in 2019, in addition to the 6.7 percent drop from the peak thus far. This makes Australia the worst performing country in the housing price market out of the 24 countries surveyed. Fitch further predicts that homeowners will have to wait until next year to see any recovery and stabilization in house prices.
Build to rent
Another housing trend that experts predict to see in 2019 is the build to rent concept. The build to rent model entails investors coming together with the government and developers to build high-quality houses for the main purpose of renting them out to long term tenants at an affordable price. A group of Australia’s major not for profit organizations and providers of affordable housing estimate the country needs 0.5 million affordable and
social homes, 0.3 million Aboriginal and social housing, and 0.2 million affordable housing homes for middle to low-income earners come 2026. The build to rent concept aims to encourage investors to change how they perceive residential housing.
Peer to peer lending
APRA’s macro-prudential tools have led to significant lending restrictions and there is also the potential for further restrictions as a result of the Hayne Royal Commission. This has opened a window of opportunity for peer to peer lending to enter the housing market in 2019. This is a big chance for lenders to earn returns of between 5% and 20% p.a. by eliminating banks and becoming the number one lender for homeowners and property investors.
For many years, developers in Australia have focused on high-end properties until last year when we saw a decline in construction of expensive homes. In 2019, we expect to see a rise in popularity of affordable homes which will be constructed in areas with amenities such as schools, shops, hospitals, and public transport.
Tarps play a major role in protecting your homes. It is wise to know that as housing trends may change over time, the use of tarps in shielding your home from the elements during unannounced circumstances remains the same.