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With the end of financial now come and gone, it’s time to look at what property investors and buyers can expect for the 2014/15 financial year.

With the end of financial now come and gone, it’s time to look at what property investors and buyers can expect for the 2014/15 financial year.

The property market has experienced ups and downs throughout the past 12 months, but it still remains strong. 

According to the RP Data Daily Home Index, the financial year ended on a high. Sydney was the best performing major capital city over the past 12 months with a home value growth of 15.5%. The other capital cities were as follows: Melbourne (9.4%), Brisbane (6.6%), Perth (5.4%) and the weakest performing capital city was Adelaide with only 2.9% growth.

Supply and demand will play a big part in where the property market is heading over the next decade. Late last year, The Australian Bureau of Statistics created housing demand forecasts for each age-related group for the next few decades. According to these forecasts, first home buyers, downsizers and retirement living will increase in demand whereas young renters and upgraders will see a drop in market demand over the next 10 years. 

The number of next home buyers has also started to increase over the past 12 months. The Commonwealth Bank’s Home Finance Index report has revealed that between January 2013 - January 2014, next-time home buyers took out 86.3% of all home loans. This report has also shown that investment properties are the most popular option for next home buyers with 58% planning to purchase an investment next. One of the reasons why Australian property investors are expanding their portfolio is due to the record low interest rates.

Just last week, the RBA announced they have kept the rate on hold at 2.50%. for the 11th consecutive month. This record low interest rate has not only helped investors build wealth, but also helped make mortgage repayments for home owners more manageable and experts predict this will continue during the next year.  

According to Harley Dale, chief economist of the Housing Industry of Australia (HIA), “interest rates will remain on hold until the middle of 2015 with a slight chance of a further interest rate reduction this core cycle.” Therefore, the 2014/15 financial year will most likely continue to have significantly low interest rates and it may be a good time to consider purchasing a property or paying extra off your mortgage.

The beginning of a new financial year is the ideal time to review your finances and re-evaluate what is working. There may be under-performing properties that need re-evaluating or properties that are exceeding your investment goals, which may prompt you to consider purchasing another investment property.

No matter what numbers the market is producing, conducting your own research is the best plan of attack to ensure you are making smart decisions.