Rising interest rates, falling house prices, and a cost-of-living crunch don’t initially appear to be signs of a buying opportunity.
But there are some diamond markets amongst the rough.
Gosford and the Central Coast have recorded some of the highest growth in Sydney.
A bridging loan could help you capitalize on these opportunities.
While median house prices in Sydney have fallen 4.7% this quarter, Wyong reported a 16% rise and Gosford a 13.4% rise over the year to June. This is largely due to strong demand and limited supply, as people in the area are reluctant to sell. Stone Real Estate Wyong’s Shaun Coffey said that up to 80% of his buyers are from Sydney, keeping the market strong over the past 12 months. Chris Curtis a property buyers agent from Curtis Associates has said that the demand from his clients wishing to purchase a property in the central coast area has boomed.
As households’ buying power diminishes in the capital city, there may be a further swing to regional and central coast property, where their money goes much further. The Central Coast is projected to reach over 400,000 residents by 2036, a growth fueled internally and through sea-change migration. It is a prime opportunity to invest in these fringe growth areas. But investors stand to benefit more if they invest promptly.
This is where bridging loans come in.
A bridging loan is a short-term loan used to finance the purchase of a new property while you sell your current one. Let’s imagine that you’ve found a property you want to purchase but haven’t yet sold your current home. A bridging loan will close the gap between the new purchase and receiving settlement funds from your sale.
This allows households to buy into a heating market, whilst giving them more flexibility to negotiate a competitive sale price in a cooling one. Households and investors should consider the value this can create for them. They can purchase into a stable growth market in the Central Coast and sell in Sydney on their terms, giving them control over their finances and reducing settlement stress. There is a lot to be gained amidst these market conditions. The opportunities are varied and exciting. However, these opportunities will not last forever; investors must act decisively to maximize their returns.
If you want to hear more about commercial bridging loans and investment bridging loans in Sydney, get in contact with us today. Sparrow Loans is a private lender specializing in property loans, business loans, and bridging loans.
Links
Gosford growth stat – https://forecast.id.com.au/central-coast-nsw/population-summary
