Property named as best investment option
Property has been picked as the best investment option in the current environment followed by shares and gold, according to Finder.
Finder’s latest ‘RBA Cash Rate Survey’ found 32% of experts and economists said property was the best investment followed by shares at 21%, gold (14%), superannuation (11%), and cash (7%).
All of the respondents expected a cash rate hold in August and most believed there would be no further cuts this year. However, 72% forecast a rate increase in 2021 or 2022.
Finder said of respondents who weighed in on property, 75% were pessimistic about Melbourne prices increasing before April 2021, and 29% expected the market to stagnate until 2022 or beyond.
For Sydney, 38% thought house prices would recover before April 2021.
Finder insights manager, Graham Cooke, said: “Melbourne’s median house price fell by 3.5% to $881,369 between March and June 2020, and Sydney wasn’t far behind with a 2% drop during this period.
“As Sydney teeters on the edge of a second major outbreak, prospects may be equally grim for homeowners here when it comes to the housing market recovery period.”
Finder noted that a “surprisingly high” percentage (42%) of experts believed now was a good time for homeowners to put their property on the market and a quarter said homeowners should wait two years.
“This environment has also pushed interest rates lower than ever. We’ve just seen the first sub-2% loan hit the market, and that could be a sign of things to come,” Cooke said.
“With investors fleeing the market, banks are fighting tooth and nail for owner-occupier customers. It’s the ultimate borrower’s market. If your home loan has a three in front of it, you’re paying too much in 2020.”
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