With all the turbulence of last year, Australia finished 2020 with a historically low interest rate of 0.1%, set by the Reserve Bank of Australia.
While this will affect different industries in different ways, it’s set to have a big impact on the Sydney real estate market in 2021 and the value of property across the Northern Beaches.
Read on to find out more.
Low interest rates are here to help boost our Australian economy
No one can deny that COVID has done a real number on economies all across the world – including our own. This has spurred a lot of action to help cushion the blow and alleviate its impact.
As many businesses hit challenging times and jobs were lost, the RBA slashed the cash rate from 0.25% to a near-zero rate, in an attempt to boost the economy.
The RBA expects to maintain this rate at its current all-time low for at least three years or until the labour market returns to full employment and inflation rises sustainably within the 2%–3% target range.
We hate to bore you with all of that, but it’s good to have a bit of background as we move to our industry: Sydney Real Estate. What will this mean for the property market?
Well, first and foremost, this low interest rate is going to flow onto lenders and banks, making mortgages much more affordable for a lot of people. As a result, this will open up a lot of new opportunities for both property buyers and sellers.
What the low interest rate means for home buyers
If you’re planning to invest, upgrade or purchase your first home, now is a great time. With such low interest rates, you may have access to mortgages that better suit your budget so you can find the next home of your dreams! Or perhaps a brand-new office or commercial space.
If you need to speak to a financial specialist about this, contact our Upstate financial team today to discuss your options.
Because the low interest rate is expected to remain for such a long time, buyer confidence is up, which is why we’re seeing the Sydney market heating up.
The Sydney Northern Beaches is a great example of this, where properties to suit all types of preferences are selling like hotcakes! Not that this comes a surprise, though – there’s no denying that Northern Beaches is one of the best places you could live in (but we are a little biased). With remote working becoming more of a norm in 2021, many people are moving away from Sydney’s CBD and into suburbs that offer them a great lifestyle.
If you’re looking to join us at the beaches, have a look at what we have on the market now!
Spotlight on Sydney’s Northern Beaches
Here’s a bit of a glimpse into this beautiful area in Sydney.
- According to idcommunity, The Northern Beaches Council population forecast for 2021 is 270,642, and is forecast to grow to 312,503 by 2041 – this is 15.4% increase.
- The land area covers approximately 25,669 hectares (which is 257km2).
- The Northern Beaches is located between 10 and 30 kilometres north-east of the Sydney CBD.
- According to the ABS, the total number of businesses is around 30,833.
- There are significant differences in the supply of residential property within the Northern Beaches which will also have a major influence in structuring different population and household planning over the next five to fifteen years.
See our blog, Northern Beaches Council Shares Their Local Housing Strategy for more.
What to do if you’re considering selling your home
With recent COVID-19 cases and community restrictions beginning to ease, many home buyers who were planning to purchase a home last year but weren’t able to are now starting to enter the market again.
Of course, considering the low interest rate, you can also expect even more buyer numbers in the market looking to invest in property. This will create a lot of competition and increase the demand for your home.
Now that people are more confident about borrowing, the RBA predicts that home values could rise up to 30% over the next few years! Doesn’t that sound like a great opportunity?
If you’ve been thinking about selling, now’s a great time to start preparing – and we have just the Upstate concierge team to help you.
What Upstate can do for you in 2021
We’re sure this news has you dreaming about all the wonderful possibilities that purchasing a new home or selling your current property presents!
Sydney’s Northern Beaches is home to exquisite houses and apartments, a fantastic lifestyle and a great community. As Northern Beaches property specialists, we would know! Our Upstate team proudly holds the title of the Number 1 real estate brand in the area.
Whether you’re buying or selling this year, Upstate is here to help you make it happen.
We’re skilled, agile, client-focused and tech-savvy – let’s just say we do things differently and it’s all for your benefit.
Want to find yourself in a better place?
We’d love to help you! Upstate is dedicated to enriching people’s lives – not only for our clients, but also for our team.
While we help you find yourself in a better place, we’re making Upstate a better place for our people. You’ll have complete peace of mind knowing we have your best interests at heart.
Our Upstate real estate specialists make buying and selling Northern Beaches property easy. That’s because we’re a big agency that acts like a boutique one. Our personalised service will help you get the most out of your property.
Speak to your local Upstate team today and we’ll show you the possibilities that are earning excellent results.
We look forward to chatting with you soon.
Your local Upstate team.