We Need to Stop Talking About Price

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Whilst all the talk has been around price and whether the bottom of the market has been reached or otherwise, it really is a moot point. The only thing price really does is impact someone’s on paper wealth and depending on where that price point actually sits compared to the point in time they bought the property; it becomes either the issue of the individual or the financier (sometimes both).

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Economic Uncertainty to Stimulate Property?

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Could it be that the saviour of the property market in Australia is actually Donald Trump? With all of the discussions around trade wars, currency manipulations, a falling Australian Dollar, historically low interest rates and a stock market that is being thrown around like a rag doll by international events may be the trigger investors need to get back into residential property. Certainly Gold, Silver and other precious metals are doing well under these circumstances, particularly as they have physical properties. With discussions around the residential market showing signs of reaching the bottom of the cycle, returns higher than bank interest rates, property may actually fall into one of the few asset classes that is demonstrating some form of stability. The RBA is certainly hoping this is the case, though confidence still has to come from the top and some support from media around the positives is always beneficial. Add in some firm international migration numbers, infrastructure spending and China looking to stimulate their own economy and Australia may just get through all of this turmoil. #buyers #residentialproperty #propertymarket #lowinterestrates

Debunking “Brisbane City Council Ban on Townhouses and Apartments No Way To Tackle City’s Biggest Problem: Urban Sprawl”

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The following is an article recently penned by Jorge Branco and published by Domain. It is one opinion and as a property economist, I sought to express my own in contrast to it. The article Jorge wrote is in italics, my comments are made in plain text.

Brisbane City Council is on a crusade to “protect the Brisbane backyard”. In those terms, the council’s bipartisan push to ban townhouses and apartments in low-density suburbs seems almost noble.

The simple reality is that Council is in fact protecting land uses that were designed for detached housing given the relaxation and often poor outcomes that occurred during the most recent investment cycle. Council is not banning apartments and townhouses, it is simply enforcing where they can and can’t go. Some might argue from a property economics perspective that this actually creates certainty in the market place. It protects the asset values of some housing, whilst also ensuring that affordability in those low density areas does not get inflated by developers that can pay more for a site than a Mum or dad purchaser, let alone a first home buyer. I suspect you will find that many suburbs actually have a mix of low density and higher density land uses throughout.

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Interest Rates - Steady as She Goes

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So, interest rates remain on hold by the RBA at 1.50%. With an inquiry into the financial sector, it would be a very brave bank that raised interest rates at the moment. What we are now seeing is APRA growing some teeth that is supporting the muscle it used to slow investment lending and a recognition that some practices were perhaps a little too easy for some borrowers to access loans.

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This Time, It's All About You

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The latest population data has been released and it tells a very interesting story on how Australia is settling and growing. It remains a very Eastern State centric platform and with that, the challenges of how to distribute economic benefit and control economic development. This is even more apparent when consideration is actually given to the current growth profiles of each.

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