Is Now A Good Time To Build?
Do you have your deposit?
Are you willing to invest your time, as well as your money?
Then why are you waiting? Now is the time to build your home.
With economic certainty on its current pedestal, the construction industry is thriving despite price increases. The property market is booming and showing no signs of slowing down. And with interest rates at an all-time low, investors are setting their sights on regional areas to increase their property portfolios and take advantage of incredible capital growth opportunities and unprecedented rental yields.
If you’re not convinced, here are five more reasons to build in 2021-2022.
Now, if you are one of those people waiting for the ‘so-called’ housing boom to be over and construction prices to decrease, we have some unfortunate news for you. The price for home builds will most likely only incline over the coming months and years. So if you’re sitting on your deposit, waiting around for a price drop, we would advise getting up, getting on the blower, and getting started on your home build for 2022.
Interest rates are at an all-time low. This alone has persuaded many people, previously on the fence, to start their build in 2021 or plan it for 2022. In addition, regional areas have attracted investors nationwide to take advantage of developing areas set to boom over the next few years. They have sought out home and land packages in these rural areas to add to their property portfolio and start reaping the rewards on their investments as the areas develop.
BUILDING VS BUYING
Not only is building often more affordable than buying an established home, but you’ll also usually get a lot more for your hard-earned money. You may even be eligible for government grants if you opt to build.
Build affordability may be an issue in the city, so we recommend looking into regional areas for your home build. Thanks to the global pandemic, working from home is a very realistic option for many employees. And when you build in a rural area such as regional Victoria, you will get more bang for your buck. A bigger house for less money. Swap the tiny balcony for a big backyard. And trade out the busyness of city life for the peaceful streets of the suburbs where your children can play safely without the hustle and bustle of the city.
Surprisingly, the demand for land has only increased in 2021 despite rising construction prices and the global pandemic. As a result, the more homes built, the less land is available to purchase, making it difficult for clients to find suitable blocks of land.
If you find a block of land within your budget, don’t gamble on a price decrease. Instead, we recommend securing it before someone else does.
INCREASE IN DEMAND
Yes, prices have increased. Generally, that’s what happens when home builds are in high demand. So despite the increased construction prices and supply shortages, home builds would have escalated in cost based solely on demand for house and land packages. And guess what, the market is going bonkers, and it’s only going to get more challenging and more competitive the longer you wait to build your home.
Remember, it’s rare that construction prices decrease, so if you have the deposit, take advantage of low-interest rates and home and land packages in rural areas such as Regional Victoria.
To find out how you can capitalise on investment opportunities in regional Victoria, have a chat with a member of our friendly team.
Gallery Groups’ Aspire Range offers a streamlined alternative to custom building that’s faster, easier, and more affordable. It’s the perfect choice for property investors looking to start or add to their portfolio. Read more about The Aspire Range here.
P.S. You can also read more about why property investors are setting their sights on regional Victoria here.