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.”
