Turnkey homes, suburb “dupes” and rentvesting are the property market trends set to dominate 2024 according to Compare the Market Property Expert, Andrew Winter.
Higher rates and budget constraints are likely to shape the next year in property. While some market moguls have predicted a crash, Mr Winter’s forecast is more optimistic.
“We’re headed towards a correction, not a crash,” Mr Winter said.
“The reason we can’t see a crash is because we’ve got this weird situation going on in the housing market in Australia where land values are at a reasonably high level and building costs are spiralling.
“If it costs a certain amount to build a new house if the established home market crashed, then nobody will be building or selling new homes – it would quite literally stop construction as quick as that.
“That’s not going to happen. Sure, we’ll get a little bit of a blip here and there where areas become trendy or not trendy, but a general crash, no”.
Instead, tough market conditions could see house hunters move on to different strategies.
Property market trends for 2024
Turnkey homes
“Whether it’s an older property fully renovated or newer property, turnkey homes are more on trend now than ever before,” Mr Winter.
“It’s because of the panic that surrounds renovating right now. That’s because the cost to renovate has jumped up due to an increase in labour, building materials and resources.
“For a lot of people, they’d rather take the punt and know what they’re in for and have something ready to go”.
Rent-vesting vs owner occupied
Mr Winter said rentvesting would remain popular with buyers keen to enter the property market, but without the budget to buy and live in their preferred area.
However, Mr Winter warned that often there were several advantages for those who end up living in their properties.
“Rentvesting is a viable option for some, but it’s even better if you can buy a home that you’d like to live in,” Mr Winter said.
“Especially if it’s a unit, you’re paying strata or body corporate fees for amenities that you don’t get to use. Not to mention, owner-occupier loans are generally cheaper, and you don’t face capital gains tax like you do with investment properties.
“Affordability is out there in most parts of Sydney. But it’s just not your four-bedroom family home on a quarter-acre block anymore”.
Suburb dupes
Mr Winter said if aspiring home buyers cannot afford their favourite suburb, they should look to neighbouring suburbs.
“House hunter hopefuls could save themselves almost a million dollars by looking just a few kilometres down the road,” Mr Winter said. “Bridesmaid suburbs or as I like to call them, the suburb dupes – often offer the same lifestyle for less”.
According to CoreLogic the median house price in Melbourne suburb Ivanhoe is $1.7M, but a nearby suburb just 4km down the road (Heidelberg West) is just $782K – that’s a savings of $918,000.
Government concessions
Mr Winter said first-home buyers should take advantage of government concessions and grants where possible.
“It’s not about timing the market – it’s about finding the right time for you,” Mr Winter said.
“It will be interesting to see the take up of the Federal Governments Help to Buy Program, allowing eligible couples to buy property with a deposit as little as 5%.”
For more information, please contact:
Natasha Innes | 0416 705 514 | natasha.innes@
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, travel and home loan products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
