I keep reminding myself that it’s okay. We’ve been here before. We just have to be careful, considerate and take precautions to get through it. If we do that, we’ll come out the other side safely. It’s important to remember those key things as we make plans for the coming weeks and months.
No, as appropriate as those words of advice might be I’m not actually talking about the prospect of another tidal wave of COVID infections. I’m talking about interest rates.
Of course, we all know interest rates can rise and fall, but acknowledging that concept and living the reality of it can be two very different things!
Interest rates in Australia have not increased for over a decade. Literally, rates have not risen in Australia since 2010, that was the year Apple launched the first iPad and Julia Gillard was sworn in as Prime Minister. So, it is a whole different world to now contemplate the implications of the trajectory of rates rising.
Now I’ve been in this profession for a lot of years. I have seen this before and I want to assure clients that the residential property market will be okay, and by that, I mean property investment values will endure.
Yes, there will be ongoing caution as potential buyers’ factor in the potential for increasing costs of borrowing. Yes, demand might ease as everyone adjusts and looks to find a new equilibrium, but the Sydney residential property market will continue to hold value that will deliver positive returns for property owners.
Participants in the market might have to come to terms with the fact it might take more time. More time to find the right purchaser. More time to negotiate the right price. More time to deliver the right return.
The other thing to remember is that rapid double-digit growth is the exception – not the rule. We have been enjoying exceptional property circumstances for so long that it might be hard for some to accept the fact that property has traditionally delivered long-term investment.
Morton sales agents work as a unified team. They share ideas and experiences. We capture the ideas, enthusiasm, and energy of those new to the profession and combine that with the extraordinary expertise of agents who have been leaders in residential property for decades. That means our team know how to achieve results in a changing market.
We have been here before and will provide honest advice and action plans for clients to deliver successful property outcomes regardless of conditions.