[Podcast] Is the Property Party Over? The Future of Real Estate Values with Stuart Wemyss

The common rhetoric in the media is that property prices just can’t keep going up; they’re too expensive, and our children will never be able to afford to get into the housing market.

Is this true?

Is the property party over?

I’m sure you’ve also heard it said that Baby Boomers like me had it much easier back in our day, since it was easier to get finance and affordability was better, meaning it was easier to get into the housing market.

Well, I know that I didn’t have it easy, but I did have the advantage of several significant property booms over the five decades of investing, and in my early days of investing, rampant inflation pushed up the value of my properties.

So back to the initial question - is the property party over?

Can property values keep strong?

These are the questions I will ask my guest today - independent financial adviser Stuart Wemyss, Director of Prosolution Private Clients, who has spent quite some time pondering these matters.

Future-proof your property investments

In today’s discussion, Stuart Wemyss and I explore strategic property investment.

We go into various aspects of property investment, from historical growth trends to actionable strategies for maximizing returns.

• Whether the era of rising property prices is over, including an analysis of median house price growth from 1983-2003 and 2003-2023
  • Median house price growth in the top five capital cities was 5.3% per annum over the past two decades.
  • This is less than the 20 years beforehand, from 1983 to 2003.
    • Median house prices grew 8.7% over that period
  • Impact of inflation on property values, with a particular focus on Melbourne and Sydney
    • Inflation in the 20 years 83 to 03 was 4.1%
    • In the most recent 20-year period it was 2.7%.
  • Borrowing capacity also changed greatly between the ’83-‘03 period and the ’03-’23 period
    • Going forward, property investors shouldn’t rely on increasing borrowing capacity to push property prices higher.
  • The importance of selecting investment-grade properties that emphasize strong land value and scarcity to outperform the average market
    • Property investors have to be more proactive today than they were in the 80s
    • Property investors should be looking for opportunities to add value to a property to help navigate market volatility.
  • Necessity of a strategic investment plan, including the right ownership structures, insurance, and financial buffers

For listeners who are interested in investing, from beginners to more experienced investors, this episode provides actionable strategies and a deeper understanding of the property market's future trends.

Links and Resources:

Michael Yardney

Stuart Wemyss – Prosolution Private Clients

Stuart’s Book – Rules of the Lending Game & Investopoly

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Some of our favourite quotes from the show:

“I often say we should plan for our plans not to go to plan. Every year there's an X factor and every decade or so the world breaks, whether it was COVID, GFC, other crises.” – Michael Yardney

“It all starts by putting a strategic plan together and then planning for your plan not to go to plan and having backup situations.” – Michael Yardney

“The question you should ask yourself again is, if everything else stays the same, what one change would create the most impact? Everything else is a distraction. Focus there first.” – Michael Yardney

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