Strong fundamentals will push through the price surge but it's not for everyone.

History shows that it requires five or seven rate rises to drench a heated property market, so a single rate rise would not make much of a difference to the surging property market. So, we should not panic if the RBA changes its mind and lifts interest rates next time. There is a complete list of factors that have combined to create a property boom. So if there is a change in one or two elements in that list, it will not impact the crack in the property market, in my opinion.

For example, the JobKeeper wage subsidy, HomeBuilder scheme, loan repayment deferrals and the coronavirus boost to JobSeeker unemployment benefits ended at the end of March, as do most of the remaining rental eviction moratoriums. In some circumstances, few people may get another short deferral. Others may be expected to pay something, but not everything. The housing prices rising across most of the Australian housing market have also been more resilient than expected.

It is funny reading all the current rage about Australian housing, often from the same commentators who were convinced home values would dive 10 to 20 per cent (if not more) only nine months ago.

The rise in property prices is predicted to rise 20 to 30 per cent from pre-pandemic levels as income growth and cheaper mortgage rates dramatically expand our net purchasing power. For 2021, banks have pencilled in the total capital growth between 10 and 15 per cent across all metro and non-metro regional areas. Nevertheless, Commonwealth Bank economists forecasted that the housing market is on the verge of a boom, and real estate prices are expected to rise as much as 16 per cent over the next two years. Although economists admit that pain will come for those who will lose work, they believe it will have only a few implications for a housing market that continues to gather pace.

However, if your friends, colleagues, or neighbours are buying properties, you should also join the bandwagon. Yes, money can be made in this property market. But, it is not for everyone. Property investing should be tactful after taking into account your long term aspirations.

If you plan to get into the property market sooner rather than later, it makes more financial sense. However, as the price growth indicates, it is tough to look for the proper pricing for the property. Do not let that stop you from becoming a part of this 1 in a 20-year party. It will help to get the services of a qualified, experienced, independent and well-connected buyer's agent to help you figure out your needs and budget and find a range of properties that fit your property portfolio.

This is where we, Get RARE Properties, comes to your assistance. We are an independent buyers' agent here to guide you through the complexities of purchasing properties. With us in your team, you can ensure that you will get the right personalised strategy, the right property at the right place. As an experienced property investor and negotiator, we look at the property as a business transaction and do not let emotions creep in. We will help you choose the best deal at the right negotiated price and save you from undue stress making the process very pleasing and rewarding.

Next steps: Should you want to learn how the author built his $5m balanced portfolio in 7 years, and aspire to own something similar, feel free to get in touch via email at rasti@getrare.com.au or book an appointment here.

Disclaimer: This article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where applicable, seek professional advice from a financial adviser.